MBC calls for Marcos EO to keep pols off ‘ayuda’
A major business organization called on President Marcos to issue an executive order (EO) discouraging political patronage in the distribution of social funds and unprogrammed allocations (UAs), warning that existing safeguards including certain provisions in the 2026 national budget remained weak.
In a statement on Tuesday, the Makati Business Club (MBC) said that while the P6.793-trillion budget is an upgrade from previous spending plans, safeguards on the release of “ayuda” (assistance) funds remained insufficient.
“We believe the President should have taken a more aggressive action on constitutionally questionable [UAs], because we believe they could be subject to discretionary disbursement, i.e. (that is), patronage,” the MBC said.
The Roundtable for Inclusive Development and the People’s Budget Coalition—which includes MBC as a member—earlier flagged P210 billion worth of “soft pork,” or cash assistance, subsidies and social programs, which they said could be distributed through “discretionary, politician-mediated processes.”
But on Monday when he signed the 2026 General Appropriations Act, Mr. Marcos assured the public the distribution of financial and other assistance would not be used for political patronage.
‘Verbal reassurance’
The MBC said, however, that assurance was not enough, as it warned that existing safeguards remained “untested” and “experience has shown that patronage will find a way.”
“More than a verbal reassurance, we are requesting an Executive Order to create rights-based and rules-based mechanisms to govern the disbursement of ayuda funds, and to strictly limit confidential and intelligence funds to legitimate security uses,” the group said.
But the MBC also acknowledged improvements in the budget—such as the P1.35-trillion funding for education and the P214.39 billion allotted to the agriculture sector.
Mr. Marcos himself noted that these allocations were the highest on record for their respective sectors.
The MBC said the President’s veto of selected UAs showed the administration was responsive to the private sector.
‘Strong oversight’
The Financial Executives Institute of the Philippines, in its statement, also welcomed the removal of certain UAs, saying this sends a signal of fiscal discipline which could help build investor confidence.
“Government spending remains a strong tool to boost growth, protect jobs, and support vulnerable sectors,” the group said. “[But] economic stimulus should not come at the expense of transparency, and every peso, whether programmed or unprogrammed, must be guided by clear objectives, measurable outcomes, and strong oversight.”
The Philippine Chamber of Commerce and Industry also called for a close scrutiny on the budget’s implementation.
“It is not enough to know what projects are created and funded but rather the detailed cost of the project should be transparent to ensure efficient use of [taxpayer] money,” said the group’s president Ferdinand Ferrer. “There has to be proper check and balance in every project spending.” —WITH A REPORT FROM NYAH GENELLE C. DE LEON
