SENATOR Erwin Tulfo welcomed the signing of the ₱6.793 trillion budget for fiscal year 2026 and lauded President Ferdinand “Bongbong” Marcos Jr.’s veto of P92.5 billion worth of projects under the unprogrammed appropriations.
“We welcome President Marcos’ signing of the 2026 General Appropriations Act, which we believe is the most transparent budget law in recent history,” Tulfo said in a statement.
“This is what we need, a budget that will restore the public’s trust to the government.
“We are grateful that the President heeded our call to limit the use of unprogrammed appropriations and vetoed P92.5 billion worth of projects lodged under this budgetary mechanism,” he added.
Tulfo, who is also Vice-chair of the Senate Finance Committee, earlier questioned the bicameral conference committee’s retention of P243 billion in unprogrammed appropriations under the final version of the 2026 budget bill, warning that such funds could be susceptible to misuse.
He pointed out that unprogrammed funds were linked in the ghost flood control projects and other questionable infrastructure programs.
Citing Executive Secretary Ralph Recto, among the items the President vetoed is the ₱80.8 billion “lump sum” for the Strengthening Assistance for Government Infrastructure and Social Programs (SAGIP).
“President Marcos’ decision to veto several items under the unprogrammed funds is just a step toward full and real accountability,” Tulfo noted.
He also vowed to diligently exercise his role as ‘overseer’ of the national budget to ensure it is spent on projects and programs identified and approved by Congress and Malacañang.
“We carry the huge responsibility to ensure that every single peso (spent) is for the benefit of the Filipino.
“We will be on the lookout on how every project will be accomplished so there will be no more unfinished or substandard projects in the future.
“This is only the beginning of a genuine reform in the government,” Tulfo said.
Cut the VAT to 10 percent
To further ease the burden on ordinary Filipinos, Tulfo has also pushed for the reduction of the Value Added Tax (VAT) from the present 12 percent to 10 percent.
The VAT is a tax on consumption levied on goods and services at every stage of the supply chain where ‘value’ is added, from production to the point of sale. At the end of the chain, it is the ordinary consumer that bears the brunt of the tax system whose greatest champion is Executive Secretary Ralph Recto.
In his statement pushing for the enactment of SB 1552, Tulfo said lowering the VAT would “immediately increase household purchasing power and stimulate consumption” and can ultimately bolster the country’s Gross Domestic Product (GDP).
He noted that the Philippines is at par with Indonesia of having the highest VAT in the region at 12 percent “and this has been a heavy burden to low- and middle-income households because a significant portion of their income goes toward taxes instead of essential needs,” Tulfo explained.
VAT in other ASEAN countries currently stands at 10 percent in Cambodia, Vietnam, and Laos, 9 percent in Singapore, 7 percent in Thailand, 5 percent in Myanmar (commercial tax) and only 2.5 percent in Timor-Leste in the form of sales tax.
“The VAT Reduction Bill will not only lighten the load for ordinary Filipinos but will also make our country more competitive among our Southeast Asian neighbors,” Tulfo averred further.