Philippine: Finger-pointing over budget insertions hits fever pitch

Multi-billion-dollar budget insertions form part of annual legislation in Asian nation

Last updated:
Jay Hilotin, Senior Assistant Editor
4 MIN READ
A view of the joint session of the House of Representatives and Senate in Manila during the State-of-the-Nation address given by President Ferdinand Marcos Jr on July 28, 2025, during which he called out ghost flood-control projects.
A view of the joint session of the House of Representatives and Senate in Manila during the State-of-the-Nation address given by President Ferdinand Marcos Jr on July 28, 2025, during which he called out ghost flood-control projects.
AFP

Manila: In 2013, the Philippine Supreme Court declared congressional "pork barrel" funds, innocuously called the Priority Development Assistance Funds (PDAF) and inserted in the national budget (General Appropriations Act, GAA), unconstitutional.

That year, six whistleblowers exposed a scam that involved the systematic pocketing of the PDAF by dubious foundations and non-government organisations (NGOs), involving senators and congressmen.

A government audit (COA, 2013) confirmed the brazen practice. The turn of events infuriated the public, and they took their outrage to the streets.

Enter budget insertions

Controversy over the multi-billion-dollar pork has since died down. Unknown to many, it has taken another form: budget insertions.

Now, public fury is back.

This time, it's against the dagdag-bawas or budol scheme, i.e. budget insertions done by unseen hands in the two legislative chambers designed to line the pockets of the so-called "proponents".

The primary amount cited across complaints and investigations is ₱241 billion (approximately $4.1 billion) for the 2025 GAA alone, involving 12 specific insertions totalling this figure.

Some reports later broadened the scope to ₱540 billion in total congressional insertions under ex-HOR Speaker Martin Romualdez's watch, largely for public works and constituency aid, with substantial portions allegedly siphoned via kickbacks.

Amid calls for greater transparency, the midnight practice has become a hot-button issue in the Asian country.

After the Supreme Court declared PDAF unconstitutional in 2013, Filipino lawmakers have resorted to these overnight legislative ops contained in a 7,000-page annual budget document.

Notably, those who make the insertions are virtually untraceable.

This has triggered calls for greater transparency, called "OpenBicam", allowing for a quicker line-by-line scrutiny of the 7,000-page GAA.

ConditionDescription
#1. Full Public AccessLivestreaming or in-person attendance for all substantive deliberations, not just ceremonial signings, to allow real-time monitoring.
#2. Official RecordsMandatory transcripts, minutes, and disclosure of all amendments, rationales, and proponents to track changes and accountability.
#3. Referral of ChangesMajor insertions or deletions must be sent back to public committee hearings in both chambers for debate and citizen input before ratification.

Amid the accusations and counter-accusations, none of the 300+ Congressmen and 24 Senators has owned up to making these insertions.

Without third-party oversight on this practice, however, things could get worse, before they get better.

Here's what various Philippine congressmen (and related figures) have said about the allegations concerning Rep. Zaldy (Elizaldy) Co and former Senate President Chiz Escudero regarding the last-minute budget insertions during the bicameral (Bicam) process for the 2025 GAA.

Key accusations

Rep. Toby Tiangco (Navotas Rep.)

Accused Rep, Zaldy Co of AKO Bicol Party-list, of being the proponent of P13.8 billion worth of insertions in the 2025 national budget, mostly linked to flood control projects, as per the Philippine Star.

Tiangco named a number of provinces (e.g. Abra, Bukidnon, Sarangani, Oriental Mindoro) where these insertions were allegedly made.

He also said some lawmakers claimed they did not request the insertions allegedly assigned to their districts. (“Hindi amin ‘yan…”)

Ronaldo “Ronnie” Puno (House Deputy Speaker)

He explicitly named Rep. Zaldy Co and Senator Chiz Escudero as being responsible for the alleged last-minute insertions. He says they “finalised” many of these changes in a small committee during the Bicam process, the Daily Tribune reported.

Puno also claimed that when the Senate sent back its version of the budget, it already included the insertions.

He also pointed out that many DPWH (Department of Public Works and Highways) infrastructure projects (reportedly ~20,000) were affected.

Senator Chiz Escudero (Senator / former Senate President)

Escudero denies involvement in inserting “billions” into the budget. He called the allegations a demolition job and politically motivated, as per GMA Network.

He challenged the figures being thrown around (P142 billion, P150 billion, etc.), saying they are inconsistent and inflated.

He also warned that there were attempts to divert blame away from others (specifically Speaker Romualdez) by making Co or Escudero into "scapegoats".

Escudero also pointed out that amendments (“insertions”) are a "normal" part of the legislative process, and said that just because one amends a budget does not automatically make it illegal.

He suggested that to avoid misunderstandings, senators’ proposed amendments should be made public.

Rep. Ferdinand Martin Romualdez

Romualdez, House Speaker of the Philippines' House of Representatives from 2022 until his resignation on September 17, 2025, was accused of overseeing and facilitating unauthorised "budget insertions" in the 2025 national budget process.

Critics, including allies of former President Rodrigo Duterte, claimed Romualdez and key allies like Appropriations Committee Chair Zaldy Co "manipulated" blank fields in the bicameral report to insert funds post-ratification, violating the Revised Penal Code (falsification of legislative documents) and the Anti-Graft and Corrupt Practices Act.

Publicly, Romualdez supported the OpenBicam campaign. The controversy, however, escalated amid probes into anomalous flood control projects, where inserted funds were funnelled to ghost or overpriced contracts, echoing the 2013 pork barrel scandal.

Romualdez denied direct involvement, stating he took responsibility as leader to protect the House's credibility and pledged cooperation with the Independent Commission for Infrastructure probe.

Senator Joel Villanueva

As part of broader reaction, Villanueva (a key senator now accused of pocketing kickbacks from fake flood control projects) said the allegations should be probed. He has flagged concerns about Senate insertions.

Sandro Marcos (House Majority Leader)

He has called on Zaldy Co to return to the Philippines to face the allegations, saying they are severe and “dragging the House in the mud.”

Denials

Rep. Zaldy Co denied that he was the proponent of the insertions. He called the claims “unsubstantiated,” said they’re politically motivated, and emphasized that he couldn’t decide on the budget alone since both houses and the President are involved.

Senator Chiz Escudero likewise denied that he orchestrated P142-150 billion worth of insertions. He also rejected narratives that exaggerated his involvement.

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