The state-owned Intercontinental Broadcasting Corporation (IBC-13) is facing a possible funding crisis after it was allocated zero subsidy under the proposed 2027 National Expenditures Program (NEP) released by the Department of Budget and Management (DBM).
The development came as the Presidential Communications Office (PCO) received ₱2.482 billion in the 2027 NEP, lower than its original proposed budget of ₱2.621 billion.
Communications Secretary Dave Gomez told members of the House Committee on Appropriations that IBC-13 was excluded from the 2027 allocation because the television network remains a government-owned and controlled corporation (GOCC) being considered for privatization.
“IBC-13 did not get any financial assistance or subsidy under the 2027 NEP due to its continuing status as a GOCC (government-owned and controlled corporation) considered for privatization, per GCG (Governance Commission for GOCCs) Classification as of July 2026,” Gomez said.
Gomez described the situation as concerning, saying the PCO hopes Congress can restore funding for the network.
“It is quite sad that when our NEP came out from the DBM, IBC-13 had a zero budget, and we hope and pray that this committee would restore at least what we were asking from our original NEP. The reason given to us why there was a zero budget was because IBC-13’s privatization is being planned and programmed already,” he added.
PRIVATIZATION STILL IN THE WORKS
Gomez said the government is moving toward privatizing IBC-13, but he does not expect the process to be completed within the year.
He said several steps still have to be undertaken, including the preparation of the network’s privatization plan, valuation of the station and the setting of a timetable for its public bidding.
“In fact next week I’ll be meeting with GCG to finalize the privatization plan for IBC-13. Unfortunately, there are a lot of work strings required before we can privatize, we’re waiting for the privatization plan of the station itself, we’re asking the DBP to set a valuation for the bidding prize of the station, and third, for the GCG to set the timetable, the calendar for the public bidding,” he said.
Gomez warned that the absence of funding could have serious consequences for the network and its employees starting January 2027.
“I think it will be hard to have it privatized before the end of the year, so if there is zero budget for IBC-13, our employees will be in a bad state come January 1st, because we can no longer pay for their salaries and we cannot run the station,” he added.
IBC-13 COULD GO OFF AIR
IBC-13 President Jose Policarpio Jr. likewise warned that the network could cease operations after December 31 if it is neither privatized nor provided with government funding.
Policarpio pointed out that the network still has contractual commitments, including the airing of lotto games, while also needing funds to cover the salaries and pensions of retired employees.
He said the network initially sought more than ₱600 million but is now willing to settle for approximately ₱480 million to sustain its basic operations.
“If we will be given a zero subsidy, it seems impossible because in the first place if that will be privatized, we cannot have the network go off the air by December 31 and wait because we have our contractual obligations,” Policarpio said.
Policarpio also said plans to expand the network’s reach through 11 additional facilities had been postponed as IBC-13 instead focuses on securing funding for salaries, operations and Congress TV.
“We have a plan to open 11 for a wider dissemination, but we postponed that. That’s why when I met with the country’s leaders, I said we will go into a Plan B where we would ask for funds for salaries, operation, and Congress TV. So from P600 plus million — what we request now is around P480 (million),” he added.
The funding issue now places IBC-13’s immediate future in the hands of Congress as lawmakers deliberate on the proposed 2027 national budget.
For the state-run broadcaster, the key question is whether lawmakers will restore funding before the proposed budget is finalized—or whether the government will proceed with privatization while the network continues operating under its existing contractual obligations.