President Ferdinand Marcos Jr. vetoed a P43.24-billion allocation for personnel services in the 2026 national budget, sparking concerns among lawmakers over potential effects on government hiring.
On January 5, 2026, President Ferdinand Marcos Jr. issued a veto message against a P43.24-billion line item for 'Payment of Personnel Services Requirements' in the 2026 General Appropriations Act. This was one of seven unprogrammed appropriations vetoed after its transfer during bicameral deliberations.
The Department of Budget and Management (DBM) assured that salaries and benefits for government personnel would remain unaffected, as mandatory compensation is already included in agency budgets. Budget Secretary Rolando Toledo emphasized that personnel benefits are guaranteed for civilian, military, and uniformed personnel. Marcos reiterated: "I specifically note that the scheduled increases in benefits of our civil servants, including our military and uniformed personnel, are part of programmed expenditures and will not be affected by the veto of the pertinent purpose of the UA."
Lawmakers, however, raised alarms. Senate Finance Committee Chair Win Gatchalian stated that current employees would not be impacted but agencies might face constraints in hiring new staff. "Pwede lang maapektuhan ang new hires kung may balak pa ang executive na kumuha ng bagong tao," he said, adding that the issue could be resolved through the president's contingency fund or alternative DBM sources.
ACT Teachers Party-list Rep. Antonio Tinio criticized the move, arguing it confirms risks to new hires and retirement benefits. "The DBM statement is deceptive and does not address the veto of P43.2 billion for personnel requirements in the Unprogrammed Appropriations and how this will negatively impact hiring and retirement benefits," Tinio said. The DBM had only addressed P24 billion previously, not the full amount.
