PH Senate, rules out re-enacted 2027 budget, seeks funding for key infra projects

Senate President Sherwin Gatchalian dismissed the possibility of a re-enacted 2027 national budget, saying the government needs fresh spending authority to finance infrastructure projects and other key programs that can help spur economic growth.

Speaking on the sidelines of the Federation of Philippine Industries Business Summit 2026 in Taguig City on Thursday, October 29, Gatchalian said infrastructure development remains a crucial driver of the economy, warning that growth could slow further without new investments.

His remarks come as the country faces weaker economic performance. Gross domestic product (GDP) growth slowed to 2.3 percent in the second quarter of 2026, prompting economic managers to lower the year's growth target to between 3.5 percent and 4.5 percent from the previous 5 percent to 6 percent range.

The House of Representatives earlier approved the proposed PHP7.2-trillion national budget for 2027, which is now under Senate review.

Several lawmakers have expressed concern over proposed reductions in funding for major foreign-assisted infrastructure projects, including the Metro Manila Subway, North-South Commuter Railway, Laguna Lakeshore Road, and the EDSA Busway program.

Gatchalian said senators are studying the budget proposal and reviewing allocations for major transport and infrastructure projects, which he described as vital to supporting economic activity and investment.

He added that the Senate's Reinvigorate Investment and Sustainable Economic Growth (RISE) initiative is consolidating recommendations aimed at strengthening the budget and supporting economic recovery.

Apart from infrastructure spending, Gatchalian said the proposed 2027 budget will also prioritize measures to address the expected impact of a strong El Niño phenomenon, particularly on agriculture and food security.

According to the Senate leader, funding for El Niño mitigation and response programs will be among the key considerations as lawmakers finalize the national spending plan for next year.