Category: Philippines Daily Inquirer

A drop in revenues widened the government’s budget deficit to its largest in six months in September, though the Marcos administration still appears unlikely to breach its full-year cap as a deepening corruption probe dampens spending.

The fiscal shortfall narrowed by 9.22 percent from a year earlier to P248.1 billion, according to the latest data from the Bureau of the Treasury. Even so, it was the widest monthly budget hole since March 2025, when the deficit stood at P342.9 billion.

The persistent shortfall underscored that the government continued to spend beyond its means, bringing the nine-month deficit to P1.1 trillion-15.2 percent higher than in the same period last year.

But the January-September still settled below the P1.26-trillion limit set by the government for the period.

Within full-year target

Looking ahead, the Treasury said the deficit was expected to stay within the P1.56-trillion full-year target-equivalent to 5.5 percent of gross domestic product (GDP)-reiterating the government’s commitment to ‘fiscal discipline while maintaining strong support for economic growth and priority development programs.’

Broken down, revenues contracted by nearly 6 percent in September to P281.7 billion, the lowest since P279.3 billion in March. This brought the year-to-date collection to P3.4 trillion, representing a 2.24 percent growth.

By major collecting agency, the Bureau of Internal Revenue posted a 4.7-percent increase in September receipts to P183 billion, lifting its nine-month total by 11 percent to P2.3 trillion. The Treasury attributed the growth to higher collections from corporate and personal income taxes, the value-added tax, excise taxes on tobacco and the percentage tax on banks and financial institutions.

Expenditures down 7.5%

The Bureau of Customs, meanwhile, recorded a 5.3-percent rise in revenues to P80.3 billion in September, bringing its total collections for the first nine months to P701.7 billion, up nearly 2 percent from a year earlier.

On the spending side, expenditures contracted by 7.5 percent to P529.8 billion in September, as the Department of Public Works and Highways tightened scrutiny of payments to contractors amid a widening graft probe into flood control projects.

Since the start of the year, total government spending has reached P4.48 trillion, up 5.2 percent year on year.

In a commentary, BMI, a unit of the Fitch Group, said the deficit-to-GDP ratio would likely match the government’s 5.5 percent target this year, citing a spending slowdown tied to the corruption scandal.

2026 outlook

Fiscal consolidation, however, is expected to remain slow in 2026, with BMI projecting only a slight narrowing of the deficit to 5.4 percent of GDP.

‘The Philippines’ public finances remain fragile, with the debt-to-GDP ratio rising to around 60 percent from the prepandemic level of 40 percent. This places the country among the regional laggards in fiscal recovery,’ the firm said.

‘Elevated borrowing costs and a narrow revenue base further limit Manila’s ability to deliver large-scale fiscal support without compromising debt sustainability,’ it added. INQ

Prime Infrastructure Capital Inc. of billionaire and port tycoon Enrique Razon Jr. will further ramp up its energy game as the Philippines’ competition watchdog cleared its P50-billion acquisition of First Gen Corp.’s natural gas assets.

In a disclosure Friday, the Lopez-led firm said that the Philippine Competition Commission (PCC) has cleared the proposed deal.

‘First Gen and Prime Infra continue to work towards satisfaction of all other conditions precedent,’ it said.

Last May, both parties executed a term sheet with Prime Infra getting a 60 percent stake in the following facilities:

* 1,000-megawatt (MW) Santa Rita power plant;

* 500-MW San Lorenzo power plant;

* 450-MW San Gabriel power plant;

* 97-MW Avion power plant;

* the proposed 1,200-MW Santa Maria power plant; and

* Interim offshore liquefied natural gas terminal.

First Gen, meanwhile, will keep the remaining 40 percent.

Several House of Representatives lawmakers have expressed disappointment over the acquittal of key figures in one of the Priority Development Assistance Fund (PDAF) scam cases, saying that this should not happen again in the flood control mess.

Akbayan party-list Rep. Percival Cendaña on Friday said that they are challenging President Ferdinand R. Marcos Jr.’s administration to push for the conviction of individuals involved in the flood control issue. ‘The acquittal of those involved in the PDAF scam is a travesty that must not be repeated. We challenge the Marcos admin to swiftly convict those behind the flood control corruption, recover stolen funds, and pass the Open Bicam and Open Infra Bill,’ Cendaña said.

‘The people are watching.’

Mamamayang Liberal party-list Rep. Leila de Lima on the other hand admitted feeling frustrated as she was part of the team that build the cases, being the then-Justice secretary who helped then- Ombudsman Conchita Carpio-Morales in investigating the pork barrel scam.

‘For us in the DOJ (Department of Justice) and also those in the Ombudsman, as you know the DOJ and the NBI (National Bureau of Investigation) were the first to investigate the matter. And our findings were elevated to the Ombudsman. The Ombudsman then did case build up, and when the case became strong and after finding probable cause, it was referred to the Sandiganbayan.’ she said. ‘So for us, the DOJ and Ombudsman especially the Ombudsman during the time of Ombudsman Conchita Carpio-Morales, we are somewhat frustrated when we hear that cases flowing from the PDAF-Napoles scam are dismissed, because we worked hard for it [.] and during that time we’d like to think that these were fresh and strong cases,’ she added.

According to de Lima, this may be the danger with cases being heard for a long time – because the public might lose interest by the time that the case is up for promulgation.

‘That is also the pitfall of having cases heard for a long time because there seems to be lesser scrutiny especially from the public when it takes years before an issue gets decided, and then we will be surprised that cases have been dismissed,’ she explained.

Gabriela party-list Rep. Sarah Elago, meanwhile, said that there is no difference between the PDAF scam and the flood control mess – which is why Filipinos should not remain silent regarding corruption issues.

‘There is no difference in the PDAF scam before and the flood control scam now – they are similar systems of corruption and same forms of plunder. What’s infuriating is that after several years, the guilty are free. That is how slow and rotten the justice system in the Philippines is.’ she said.

‘If we stay silent, this will be a repetitive cycle. This judgment is a message to those who would steal from the public coffers – wait for a few years, you will be released,’ Elago added.

Earlier, Sandiganbayan’s Special Third Division acquitted former Senate President and current Chief Presidential Legal Counsel Juan Ponce Enrile, along with his former chief of staff Gigi Reyes, of the remaining graft charges in the pork barrel scam.

According to the anti-graft court, ‘the prosecution failed to prove their guilt beyond a reasonable doubt.’

In the decision penned by Special Third Division Chairperson Justice Ronald Moreno, the Sandiganbayan ordered businesswoman Janet Lim Napoles and several co-accused to jointly pay the government amounts ranging from P8 million to P40 million, with six percent annual interest from the finality of the decision until full payment, for each count of graft.

No civil liability would be imposed on Enrile, Reyes, the senator’s former deputy chief of staff, Jose Antonio Evangelista II, and other co-accused.

The charges against Enrile and his co-accused stemmed from allegations that part of his PDAF – worth P172.8 million – was channelled to a network of bogus non-government organizations owned by Napoles.

Enrile is one of the three senators charged during the term of President Benigno C. Aquino III for alleged involvement in the PDAF scam – the other two being former senators Bong Revilla and Senator Jinggoy Estrada. A little over a year ago, Sandiganbayan also acquitted Enrile of plunder, ruling that the prosecution failed to prove he received at least P50 million in kickbacks-the threshold for plunder.

The Philippine Institute of Volcanology and Seismology said a minor explosive eruption occurred at the summit crater of Kanlaon Volcano from 8:05 p.m. to 8:08 p.m. today, Friday.

Remuel Lajo, La Castellana incident management team commander, said the volcano was spewing ash, but it was not as strong as the volcano’s major eruption on Dec. 9, 2024. This event generated an eruption plume that rose 2,000 meters above the crater before drifting northeast, as recorded by the IP Camera in Lower Masulog, Canlaon City observation station.

Pyroclastic density currents (PDCs) could be seen descending the southern upper slopes within 1 kilometer of the summit crater. Alert Level 2 is maintained over Kanlaon Volcano, Phivolcs said.

Lajo said it was difficult to visually observe the eruption because it was dark.

La Castellana Mayor Anejo Nicor said the eruption was not felt at the center of the town, and at the moment, it did not appear that an evacuation was necessary.

Fidel Concepcion can finally call himself a champion, but not after needing to pick himself up in regulation and surviving a nerve-wracking two holes of sudden death to turn back a gritty South Korean also wanting to fulfill his potential.

After returning a level par 72 to be in a playoff with Jae Hyun-jung after a 72-hole 284, Concepcion nailed a 10-footer for birdie on their 20th hole of the day that ended a decade of wait by hoisting the ICTSI Apo Golf Classic trophy in Davao on a humid Friday afternoon.

‘Honestly, it’s unreal,’ said an emotional Concepcion, who struggled to find the words. ‘It’s one of those things you never know if it will ever happen. And somehow it did.’

Concepcion was at one-over after a double bogey six on the 14th, before steadying the ship somewhat by picking up a shot on the next which proved to be pivotal.

Jung fired a tournament-best 67 built around six birdies, with three coming in the last three holes as he caught Concepcion at the wire after erasing a six-stroke lead at one point during the round.

Antonio Lascuña also fired a 72 to finish alone in third just four strokes behind, with Guido van der Valk returning a 71 to wind up another shot behind. Elee Bisera fired a 74 to round out the top five with a 291 tally.

Concepcion hit an 8-iron approach from 160 yards on their second trip to the par-4 ninth hole to within that 10-foot range, before holing the putt that erased all bitter memories of bitter finishes where he failed to get the job done in the past

The tour will travel next week to nearby South Pacific, a well-manicured layout where scores are expected to be low, quite the departure from the battle of survival the gritty men of the PGT had to endure at tree-lined Apo Golf.

Alex Eala and partner Nadiia Kichenok rolled to the semifinals of the Guangzhou Open doubles competition on Friday.

Eala and Kichenok advanced after turning back Russians Polina Kudermetova and Kamilla Rakhimova, 6-3, 7-5.

The Filipino-Ukrainian pair will face Polish Katarzyna Piter and Indonesian Janice Tjen in the semis on Saturday afternoon.

Piter and Tjen took down top seeds Quinn Gleason and Elena Pridankina in their quarters matchup.

Eala and Tjen shared recent history together at the Sao Paulo Open last month.

In an upset, the 20-year-old Eala lost to eventual finalist Tjen, 6-4, 6-1, in the quarterfinal round.

Eala gets a chance to get back at Tjen in doubles action and make up for her string of first-round exits in singles play.

The Rafa Nadal Academy graduate is coming off an opening round loss in singles at the Guangzhou Open on Tuesday.

Henry Galinato was a big spark off the bench for TNT in blowing out Titan Ultra in the PBA Philippine Cup on Friday night.

Galinato logged just 15 minutes but made the most of his playing time with a team-high 16 points on an efficient 6-of-8 shooting from the field on top of nine rebounds in a 130-92 romp.

‘I was just following what coach Chot (Reyes) was saying, on the board he wrote ‘effort’ and that’s what I tried to give,’ said the burly 6-foot-6 big man.

‘I just do what my team needs me to do, if it happens, it happens and I’m grateful for it.’

Galinato led a balanced effort by the Tropang 5G, who also drew double-digit scoring from Calvin Oftana, Mike Nieto and Tyrus Hill.

Oftana recorded a double-double with 14 points and 10 rebounds while Nieto and Hill added 15 and 12 points, respectively, to help TNT climb to 3-1.

Galinato, the former University of the Philippines cog, was coming off a solid eight-point, seven-rebound outing in TNT’s win over Converge on Saturday in Vigan, Ilocos Sur.

‘We’re taking it game by game, be better from the last game we had, build on from that. The team’s morale is really, really good right now.’

Galinato looks to continue his strong showing on Sunday when TNT shoots for a third consecutive victory against Meralco.

Renewable energy developer Alternergy Holdings Corp. has struck a P2.4-billion deal to sell a 40-percent stake in its Tanay and Alabat wind farm projects to the group of mining magnate Walter Brown.

Industry sources told the Inquirer that Alternergy had signed on Thursday an agreement that would allow A. Brown Company Inc. to buy into each of the two projects.

Alternergy, founded by a group led by former Energy Secretary Vicente Perez, will keep a 60-percent stake.

The wind farms are under Alternergy Tanay Wind Corp. and Alabat Wind Power Corp.

The two projects will have a combined generation capacity of 192 megawatts upon completion next year.

Brown group’s single biggest investment

The P2.4-billion investment marks the single largest investment made by A. Brown to date, industry sources added.

The company is primarily engaged in real estate development in the Misamis Oriental and Caraga Region.

A. Brown has subsidiaries involved in palm oil milling, power generation, investment holdings and crude oil operations covering manufacturing and trading of petroleum products and by-products.

The investment in Alternergy’s two wind projects is made through subsidiary ABC Energy Inc.

For its part, Alternergy develops, operates and maintains different renewable energy projects such as wind, solar, run-of-river hydro and battery storage power projects. Its vision is to be a leading renewable energy firm in the Philippines.

Renewable energy pioneers

Three of Alternergy’s founding partners – Perez, Knud Hedeager and Gerry Magbanua – are renewable energy pioneers in Southeast Asia. They were involved in the development of Bangui Bay wind farm in North Luzon, the first commercial wind farm in Southeast Asia.

After the completion of Bangui Bay wind farm, the three came together to create Alternergy. Since 2008, Alternergy has served as a clean energy pioneer in the Philippines. It has developed 86 MW of operating assets in wind and solar energy.

Alternergy is anticipating rapid growth with a pipeline of assets in hydro, wind and solar energy under development, with potential installed capacity of up to 500 MW expected by the end of 2026.

Former Ako Bicol Rep. Zaldy Co, along with other congressmen, may be included in the first batch of flood control cases set to be filed before the Sandiganbayan in November, Ombudsman Jesus Crispin Remulla said.

In an ambush interview at the Senate on Friday, Remulla said Co is ‘most likely included’ in the initial batch of cases to be filed before the anti-graft court.

‘I don’t have the complete list. But many names are on it, including some congressmen,’ Remulla said in Filipino.

‘Most likely included because I remember seeing a Mindoro case filed,’ he added when asked specifically if Co would be charged.

Co has recently been implicated in alleged irregularities in infrastructure projects, particularly flood control works in Bulacan. Former district and assistant engineers testified that he was involved in budget insertions that totaled at least P35 billion from 2022 to 2025.

They also claimed that kickbacks were delivered to Co, including one alleged delivery of P1 billion in cash, packed into more than 20 suitcases and transported in multiple vans to his penthouse at a luxury hotel in Taguig.

Remulla also said he is uncertain whether any senators will be included in the first batch of cases expected in November.

‘As for senators, I am not sure if any are included,’ he said in Filipino.

At the Senate subpanel on finance’s hearing on the proposed 2026 budget of the Ombudsman, Sen. Gatchalian noted that filing cases before the Sandiganbayan can take two to three years.

Responding to Gatchalian, Remulla said that under his leadership, case filings-particularly for anomalous flood control projects-would no longer take long.

‘What’s good about this is that, because of the crisis, we found ways to fast-track cases,’ Remulla said. When asked when cases would be filed with the Sandiganbayan, he said they are targeting within 30 days.

‘Hopefully, within 30 days, we will be able to file before the Sandiganbayan. That’s possible,’ he added.

President Ferdinand Marcos Jr. on Friday stressed the importance of supporting communities in addressing their health needs, noting that these directly affect the quality of education children receive.

Speaking at the turnover ceremony of patient transport vehicles (PTVs) in Butuan City, Marcos reaffirmed his administration’s commitment to prioritizing education in the final half of his term.

‘Children need proper nutrition and training. When they get to school and lack food, we have feeding programs. We have to continue taking care of our children so they remain healthy,’ he said in Filipino.

‘The biggest reason why some children cannot attend or succeed in school is illness. Toothaches, for example, so we provide toothbrushes as part of education. You wouldn’t think it’s part of education, but it is,’ he added.

Marcos also noted that funds will now be downloaded directly to local government units (LGUs) for classroom construction, unlike before, when the budget was first routed through the Department of Public Works and Highways.

‘I have confidence in LGU executives because they cannot implement ghost projects. You will all be monitored. You cannot do substandard work, and if you do, your constituents will call you out daily,’ he said in Filipino.

He also urged LGUs to take the initiative in addressing community needs rather than waiting for directives from the national government.

During the ceremony, Marcos led the turnover of 71 PTVs for Agusan del Norte, Surigao del Sur, Surigao, Dinagat Islands, Davao de Oro, Davao Oriental, and Misamis Occidental.

The ambulances are equipped with basic medical emergency supplies, including stretchers, oxygen tanks, wheelchairs, first aid kits, blood pressure monitors, and medicines./mcm