With P2.08 billion axed from UP’s budget this year, the university faces its largest budget cut in at least over two decades, primarily due to excluded infrastructure projects across the system.
The budget cut from P24.77 last year to P22.70 billion this year, per the 2025 General Appropriations Act, can be pinned primarily on the reduction of capital outlays, or one-time expenditures on infrastructure, land, equipment, and other long-term assets, from P3.10 billion the previous year to only P431.53 million in 2025 (see sidebar).
This year’s budget remained averse to new construction proposals while also axing many renovation and continuation of projects. This will likely further delay the completion of the UP Diliman’s College of Music buildings, UP Los Baños’s University Library and Knowledge Center, and UP Visayas’s Main Library, among many others, unless the administration can source funds elsewhere.
Notable infrastructure projects retained from UP’s proposal are:
• Phase 3 construction of the UP Open University’s International Convention Center (P72.83 million)
• Restoration and renovation of UP Manila’s Lara Hall (P64.7 million)
• UP Diliman’s National College for Public Administration and Governance (P60 million)
• Completion of UP Visayas Extension Building (P30 million)
• Phase 2 construction of UP New Clark City (P20 million)
The removal of proposed new infrastructure projects is somehow expected following UP’s usual practice of splurging with several big-ticket infrastructure proposals. But the omission of several line items aimed at renovating or continuing existing infrastructure projects alarmed many university constituents.
In fact, even before Congress’s budget deliberations, the Department of Budget and Management already planned a similarly large cut for the university and many other state universities and colleges, primarily targeting their capital outlay allocation, too.
Infrastructure aside, the budget remained rather stable for regular operating expenses. Personnel services (P15.49 billion), for the payment of wages and benefits of employees, and maintenance and other operating expenses (P6.78 billion), for daily operational costs for utilities and supplies, constituted the majority of the budget. Combined, these expenses actually increased by P589.81 million compared to last year.
Personnel service allotment increased overall (P636.08 million), but still fell short of UP’s proposal. The proposed budget would have seen an additional P3.34 billion for PS, primarily for additional faculty and administrative items for all constituent universities.
While the budget for maintenance and other operating expenses dipped by P42.27 million, it may be due to the fewer number of approved projects, as its allocation under regular programs actually increased by P82.86 million.
The Philippine General Hospital also saw an increase in its budget by P52.35 million, but the approved allocation for medical assistance for indigent patients (P549.82 million) is less than UP’s proposed P633 million. The only proposed infrastructure project under the hospital for the completion of its multi-specialty building was also not granted.
Though the exclusion of ambitious infrastructure usually headlines budget cuts, it’s the omission of smaller ticket items like renovations and continuations of necessary construction and measly increases for daily operating expenses that may hurt the university’s day-to-day most. ●
