Manila: The Senate on Tuesday approved on third reading House Bill No. 4058, or the proposed 2026 General Appropriations Act (GAA), with 17 affirmative votes and no abstentions. This PHP5.768-trillion spending plan will now proceed to the bicameral conference as senators prepare to reconcile differing provisions with the House of Representatives.
According to Philippines News Agency, Senator Win Gatchalian, chairperson of the Senate Committee on Finance, stated that the Senate version of the budget aims to enhance education, health, disaster response, and transparency measures. He described it as being more disciplined and accountable, highlighting increases in funding for classroom construction, the school-based feeding program, state universities and colleges, zero-balance billing in Department of Health (DOH) hospitals, and disaster recovery programs.
Senator Erwin Tulfo, in explaining his 'yes' vote, raised concerns over a Supreme Court ruling that mandated the restoration of PHP60 billion to the Philippine Health Insurance Corp. (PhilHealth). He questioned whether this amount was fully incorporated into the Senate-approved budget's PHP113-billion allocation for PhilHealth and urged officials to clarify the source of the PHP60 billion. Tulfo expressed concerns about the potential burden of higher premiums on members, emphasizing the financial struggles of Filipinos who avoid hospital care due to lack of funds.
Senator Pia Cayetano voted in favor of the measure but noted her reservations. She expressed alarm over persistent shortfalls in PhilHealth's legally earmarked funds, pointing to a PHP16.52-billion gap for 2026, the nonrelease of certified sin tax collections, and over PHP106 billion in unremitted statutory shares from the Philippine Amusement and Gaming Corporation (PAGCOR) and Philippine Charity Sweepstakes Office (PCSO). She highlighted these issues as violations of law and warned that Congress risks becoming complicit unless the bicameral conference committee addresses these discrepancies.
Senator Loren Legarda also expressed concerns about PhilHealth's reserve fund. She noted that while the House identified PHP253 billion in reductions to comply with the Supreme Court's directive, the PHP60 billion returned was allocated to benefit package improvements rather than the reserves. Legarda urged the bicameral panel to amend the budget provision to ensure full compliance with the ruling and committed to filing a bill mandating automatic appropriations and releases of sin tax earmarks and statutory shares from PAGCOR and PCSO to PhilHealth.
Senator Rodante Marcoleta, who also voted in favor of the budget, emphasized the key amendments he introduced that were adopted in the Senate version. These amendments include increased funding for the High Value Crops Development Program and PHP500 million for drainage improvement along Marcos Highway. He also supported the reduction of funding for the Balog-Balog Multipurpose Project Phase II to align spending with actual project progress. Marcoleta stated that these amendments provide responses to the needs of farmers, flood-prone communities, and the prudent use of public funds.
Senator Gatchalian mentioned that the bicameral conference committee is expected to convene this week, with the goal of signing the bicameral conference committee report on Dec. 16, followed by ratification on Dec. 17, the last session day for the year.
