MANILA, Philippines — The Office of the President is seeking a dramatically smaller budget for 2027, but Executive Secretary Ralph Recto says the 64% reduction will not cripple Malacañang’s ability to run the government.
The proposed budget for the Office of the President (OP) stands at approximately ₱10.156 billion for 2027, down sharply from the roughly ₱28 billion allocated to the office in 2026.
Recto defended the lower spending plan, saying the reduction reflects lower operational requirements and the completion of activities associated with the Philippines’ hosting of the ASEAN Summit and related meetings this year.
But the size of the cut is attracting attention — particularly because billions of pesos in confidential and intelligence funds remain part of the proposal.
Why the Palace budget is falling so sharply
The 64% reduction may initially look like a sweeping cut to presidential operations.
Recto, however, said the comparison is heavily influenced by extraordinary expenses included in the 2026 budget.
The Philippines hosted the 48th and 49th ASEAN Summits and related meetings in 2026, creating additional expenses that will not be repeated at the same scale in 2027.
The OP also cited the streamlining of operations among its 49 delivery units as another reason for the lower proposed allocation.
The House of Representatives said the proposed funding is intended to allow the country’s highest executive office to continue fulfilling its constitutional and administrative responsibilities.
Recto: “We’re asking for less” while preparing to do more
Recto argued that a smaller budget does not necessarily mean a smaller role for the presidency.
He said the proposed allocation is enough to support the President’s core responsibilities, including overseeing government operations, responding to emergencies, monitoring economic plans, protecting national interests and coordinating agencies.
The funding is also intended to cover Cabinet meetings, policy consultations, presidential engagements and the daily operations of Malacañang.
The proposed OP budget represents only about 0.14% of the government’s proposed ₱7.2-trillion national budget for 2027, according to Recto’s presentation.
The part that triggered questions: ₱4.5 billion in confidential and intelligence funds
While the overall OP budget is falling sharply, one major component has not changed.
The proposed 2027 budget includes about ₱4.55 billion in confidential and intelligence funds (CIFs) — roughly the same level allocated in 2026.
The figure consists of approximately ₱2.25 billion in confidential funds and ₱2.3 billion in intelligence funds.
That allocation became a focal point for opposition lawmakers who wanted the Office of the President to explain how the funds would be used.
Deputy Minority Leader Antonio Tinio argued that lawmakers should have been given the opportunity to scrutinize the proposal, particularly because the CIF allocation represents a substantial share of the OP’s proposed spending plan.
House budget hearing ends in just 16 minutes
The controversy intensified after the House Committee on Appropriations ended the OP budget deliberations unusually quickly.
The committee voted 37-5 to terminate the discussion after Recto’s presentation, invoking what lawmakers described as institutional and inter-branch parliamentary courtesy toward the Office of the President.
The entire presentation and deliberation reportedly lasted only around 16 minutes.
Critics objected, saying the shortened hearing prevented lawmakers from fully questioning the proposed spending plan.
House officials, however, said lawmakers would still have an opportunity to raise questions when the proposed General Appropriations Bill reaches plenary debates.
Travel and state visits remain in the budget
The proposed spending plan also includes funding for the President’s local and foreign missions and state visits.
The OP is seeking approximately ₱1.014 billion for this purpose in 2027, slightly below the roughly ₱1.018 billion allocated for travel expenses in 2026.
Recto maintained that fiscal discipline and accountability were considered in preparing the proposed budget and said the office followed the Department of Budget and Management’s established processes.
The bigger political issue goes beyond the 64% cut
The budget debate is unfolding amid heightened scrutiny of government spending.
Some lawmakers and budget watchdogs have questioned the continued practice of extending parliamentary courtesy to the Office of the President, arguing that Congress should exercise its constitutional oversight role by examining presidential spending in detail.
The issue is particularly sensitive because the OP has oversight authority over programs involving local governments, while the proposed Local Government Support Fund (LGSF) for 2027 is significantly larger than in previous years.
Critics have raised concerns about transparency and the possibility of political influence over government funds, although these concerns remain allegations and should not be presented as proof of wrongdoing.
This is not yet the final Palace budget
One crucial detail should not get lost amid the headline-grabbing 64% figure:
₱10.156 billion is a proposed amount.
It is part of the proposed ₱7.2-trillion National Expenditure Program for 2027 and must still go through the congressional budget process before the final appropriations law is enacted.
The House committee has already advanced the proposal at the committee level, but lawmakers can still modify spending levels as the budget moves through the legislative process.
A smaller Palace budget — with bigger questions
The Marcos administration is presenting the reduction as a sign of fiscal discipline: extraordinary ASEAN-related expenses are ending, operations are being streamlined and the presidency says it can perform its core functions with substantially less money.
But the political debate is unlikely to disappear.
With ₱4.55 billion in confidential and intelligence funds remaining in the proposal, questions about transparency could continue as the 2027 budget moves toward plenary debates and eventually the Senate.
For Malacañang, the message is simple: less money does not mean less work.
For its critics, the more important question is different:
With billions still earmarked for confidential spending, will Congress finally get the detailed answers it was denied during the rushed budget hearing?
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