Romualdez’s Bold Bet: Can His Budget Fix Deliver for the Poor or Fall to Politics?

By Louis ‘Barok‘ C. Biraogo — July 10, 2025

IN THE Philippines, where unbuilt bridges trap farmers and crumbling classrooms rob children of futures, Rep. Ferdinand Martin Romualdez’s House Bill No. 11, the Budget Modernization Act, dares to promise a seismic shift: a cash-based budgeting system to deliver every peso to its purpose. For a nation battered by delays and distrust, it’s a tantalizing vision. But with pork barrel ghosts and a P241 billion scandal haunting the 2025 budget, can this reform outsmart the political machine, or will it merely dress up old flaws in new garb?

Will Cash-Based Budgeting Deliver or Derail? The Core Clash

Why It Could Work: Speed, Accountability, and a Crackdown on Waste

Romualdez’s House Bill No. 11, filed on June 30, 2025, champions a cash-based budgeting system, restricting obligations and disbursements to goods and services delivered within the fiscal year. The pitch is bold: accelerate government services, slash wasteful spending, and boost transparency through digital tracking.

By forcing agencies to spend funds within the year, the bill targets “parked” funds—allocations obligated but unspent, stalling projects like rural roads or school repairs. In 2017, the Department of Public Works and Highways (DPWH) disbursed only P230 billion of its P662.69 billion budget, leaving infrastructure dreams in limbo. A cash-based system could jolt agencies into action, ensuring funds for a hospital in Leyte or a flood barrier in Davao don’t languish.

The digital oversight pledge is a game-changer. A public financial management system tracking every peso could expose abuses, like the P85 billion in budget deviations flagged in 2017. By curbing lump-sum funds without clear deliverables, the bill aligns with the Supreme Court’s 2013 ruling against the Priority Development Assistance Fund (PDAF), aiming to choke off patronage pipelines.

Romualdez’s vision dovetails with the Department of Budget and Management’s (DBM) reform push, promising a budget process that serves national goals, not political egos.

Why It Might Crash: Rushed Projects and a Capacity Crisis

But the cash-based dream has cracks. Critics warn that its rigid annual spending deadline could spawn shoddy, rushed projects—imagine a bridge in Mindanao collapsing under monsoon rains because corners were cut to meet fiscal-year targets. Historical data fuels this fear: in 2018, obligation rates fell to 93.1% from 95.6% in 2017, hampered by late procurement and failed bids.

Agencies like DPWH, juggling complex projects, may flounder under tight timelines, especially with bottlenecks like right-of-way delays. The Marikina Bridge, stalled for 17 years over land disputes, shows how external hurdles can cripple even well-meaning reforms.

The digital tracking system assumes technological prowess that many local government units lack. In remote barangays with spotty internet, real-time oversight could falter, inviting creative accounting. Lawmakers in 2018 resisted a similar shift, citing confusion and favoring the flexibility of obligation-based budgeting for multi-year projects.

Underutilization is a real threat: if agencies can’t spend funds within the year, budgets may shrink, starving critical programs. When cash-based budgeting was piloted in 2019, some agencies balked at starting projects late in the fiscal year, fearing incomplete execution.

Pork Barrels and Power Plays: The Toxic Budget Backdrop

Romualdez’s bill lands in a cesspool of budget controversies. The 2025 General Appropriations Act (GAA) is a glaring example: former Speaker Pantaleon Alvarez accused Romualdez and allies of inserting ~~P241 billion in unapproved allocations~~ post-bicameral approval, a move critics labeled document falsification. House leaders called these “corrections,” but the scale—4% of the P6.352 trillion budget—screams political maneuvering.

This echoes the PDAF scandals, where funds were funneled to lawmakers’ pet projects via dubious NGOs. Despite the Supreme Court’s 2013 ban, loopholes persist, with “hyperlocal” projects and aid programs as new patronage conduits.

Under Marcos Jr., unprogrammed appropriations have ballooned to P690 billion annually—four times the Duterte-era average—creating a slush fund for discretionary spending. The 2025 budget’s cuts to PhilHealth and education, while boosting local infrastructure, prioritize political capital over public welfare.

For families like the Dela Cruzes in Quezon City, who depend on PhilHealth for their son’s dialysis, these shifts are life-or-death. Public trust, already eroded by decades of scandals, frays further when budgets seem to serve elites, not the masses.

Filipinos on the Line: Lifeline or Letdown?

The Promise: Faster Roads, Cleaner Governance

If it works, cash-based budgeting could transform lives. Under Marcos Jr.’s Build, Build, More program, swift budget execution could deliver highways for farmers like Mang Juan in Nueva Ecija or schools for kids in typhoon-battered Samar. Digital tracking could deter corruption, ensuring funds for a Zamboanga health center aren’t siphoned off.

By redefining “savings” to comply with Supreme Court rulings on PDAF and DAP, the bill could seal patronage loopholes, making every peso count. For a nation where 26% of people live below the poverty line, efficient spending is a lifeline to progress.

The Peril: Service Gaps and Shattered Hopes

But the risks are dire. If agencies like DPWH or the Department of Transportation (DOTr) can’t adapt to annual deadlines, projects may stall, leaving communities like those in Marikina, still reeling from right-of-way disputes, without promised infrastructure. Procurement woes—evident in the 84.6% obligation rate in 2016—could worsen under pressure, leading to shoddy work or unspent funds.

For rural families, this means continued isolation; for urban poor, it means overcrowded hospitals and underfunded schools. The digital system’s success hinges on agency capacity, which varies widely. Without robust training, the reform could widen gaps between urban and rural agencies, deepening inequality.

Romualdez’s Crusade: Visionary or Varnished Politician?

Romualdez deserves applause for his bold move. Filing the bill before the 20th Congress opens on July 28, 2025, signals urgency and reformist zeal. His bipartisan coalition, with co-authors like Tingog Party-list Reps. Andrew Julian Romualdez and Jude Acidre, shows political acumen to navigate a fractious House.

Aligning with DBM’s reform legacy, rooted in Duterte’s Executive Order No. 91 in 2019, lends institutional heft. By tackling Supreme Court rulings on PDAF and DAP through tighter definitions of savings, Romualdez positions himself as a champion of accountability. His rallying cry—“Bawat sentimo sa national budget ay pera ng taongbayan”—strikes a chord with Filipinos fed up with waste.

The 2025 budget controversy, with allegations of P241 billion in insertions, poses challenges for Romualdez’s reform efforts. As a Marcos ally, he faces scrutiny over whether his push for change can fully align with the broader political landscape. Yet, his leadership on House Bill No. 11 suggests a commitment to rise above these hurdles and deliver meaningful reform.

Charting the Path: How to Make Reform Real

To turn House Bill No. 11 into a true game-changer, the following are essential:

Pilot Powerhouse Agencies First
Test the cash-based system in high-capacity agencies like DOTr, a Build, Build, More veteran, to iron out kinks like procurement delays or capacity gaps before a nationwide leap. Malaysia’s phased adoption of outcome-based budgeting offers a model for success.
Lock Down Transparency with COA Muscle
Digital tracking is promising but vulnerable without teeth. Pair it with real-time Commission on Audit (COA) audits to catch irregularities early, preventing post-approval insertions like those in 2025. Public COA reports could keep agencies honest.
Slam the Door on Patronage
Ban hyperlocal project insertions, mandating that all appropriations align with national or regional development plans. This would force lawmakers to prioritize collective needs over constituency favors, striking at the heart of pork barrel politics.

The Ultimate Test: Can Reform Beat Corruption?

House Bill No. 11 is a high-stakes bet on a better Philippines. For every family waiting for a road, a school, or a hospital, its promise of swift, transparent spending is a beacon of hope. But the 2025 budget’s P241 billion scandal and the specter of unprogrammed funds reveal a political machine that thrives on subverting reforms.

Romualdez’s bill could change lives—if it overcomes a culture where budgets are pawns in power games. This is the litmus test: Can a technical fix like cash-based budgeting dismantle the patronage that has long betrayed Filipinos? The answer lies not in the bill’s design, but in the will to enforce it.

For Mang Juan, the Dela Cruzes, and millions more, the stakes could not be higher.