Supreme Court holds oral arguments on unprogrammed funds

The Supreme Court held its first oral arguments on April 7 on petitions challenging unprogrammed appropriations in the 2024, 2025, and 2026 national budgets. Invited experts as amici curiae presented divided views on their legality and implications. Some warned of weakened transparency, while others defended their necessity.

The Supreme Court in Manila held the first part of its oral arguments on Tuesday, April 7, on four petitions seeking to declare unprogrammed appropriations (UA) and other alleged insertions in the 2024, 2025, and 2026 General Appropriations Acts unconstitutional.

University of the Philippines economics professor Solita Collas-Monsod said that since 2022, Congress has used UA as 'the place to hide lump sum appropriations,' particularly those approved by the bicameral conference committee. She noted, citing a Congressional Policy and Budgeting Research Department study, that approved UA have exceeded proposed funds since 2022, leading to higher-than-planned spending and failure to meet budget deficit and debt-to-GDP targets.

Former Department of Budget and Management Secretary Benjamin Diokno pointed to five instances where Congress-approved UA exceeded presidential proposals, three in 2023, 2024, and 2025. 'This is only meant to reflect the monumental abuses done by Congress during the last three years,' he added. Former budget secretary Florencio Abad warned that recent UA expansions 'risk becoming... a mechanism for circumventing constitutional restraints.'

Former Senate President Franklin Drilon argued that unprogrammed appropriations are not inherently unconstitutional. 'The decision to no longer include unprogrammed funds as a component of the annual budget... is a matter vested in... Congress and the executive branch,' he said, noting violations occur in execution, not the law itself.

Makala yanayohusiana

President Marcos signs P6.793-trillion 2026 national budget, highlighting education and infrastructure allocations amid vetoes for prudent spending.
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Marcos signs P6.793-trillion budget for 2026

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President Ferdinand Marcos Jr. signed the P6.793-trillion national budget for 2026 on January 5, allocating a record P1.015 trillion to the Department of Education and P530.9 billion to the DPWH. He vetoed P92.5 billion in unprogrammed appropriations, leaving P150.9 billion, while vowing prudent spending to curb corruption. The budget bars political involvement in aid distribution, though critics question the remaining funds.

The Senate is prepared to defend the constitutionality of unprogrammed appropriations (UA) in the 2026 national budget, which has been challenged before the Supreme Court. The petition was filed by Caloocan Rep. Edgar Erice and Mamamayang Liberal party-list Rep. Leila de Lima, seeking a temporary restraining order against its use. Senate President Vicente Sotto III expressed confidence that the court will uphold the budget.

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The Supreme Court will begin oral arguments tomorrow on petitions challenging the legality of unprogrammed appropriations and special accounts in the national budget. The hearings are set at the Session Hall in Padre Faura, Manila, starting at 9:30 a.m.

In the 'QR!' program on Canal E, experts analyzed the government's university funding project and compared it to the current law. Germán Pinazo, vice-rector of the Universidad Nacional de General Sarmiento, stated that the executive is breaching an existing regulation backed by the judiciary. The discussion highlighted budgetary obligations and effects on salaries and scholarships.

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The bicameral conference committee for the 2026 national budget began on December 13, 2025, focusing on reconciling versions for education, health, and agriculture sectors. Discussions stalled over farm-to-market roads funding due to corruption concerns, but lawmakers eventually agreed to increase it. Meanwhile, a congressman resigned from the House contingent amid complaints against him.

The University of Buenos Aires' Superior Council unanimously demanded that the national government implement the University Financing Law and ratified the budget emergency for 2026. The action addresses the lack of budget updates, which do not cover inflation or essential expenses. This endangers the institution's teaching, research, and health activities.

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The bicameral conference committee has approved an increase in funding for the Assistance to Individuals in Crisis Situations (AICS) program to P63.8 billion for 2026, despite concerns over potential political misuse. Lawmakers also addressed last-minute requests from government agencies and approved budgets for over 20 agencies. Malacañang insists on passing a new budget to avoid reenacting the previous one.

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