MANILA, Philippines—The Supreme Court declared the 2024 and 2025 national budget laws unconstitutional after Congress raised appropriations beyond the president’s recommended totals, while also invalidating provisions governing unprogrammed spending in the 2026 budget.
In a decision penned by Senior Associate Justice Marvic Leonen, the Supreme Court En Banc granted the petitions challenging increases in unprogrammed appropriations. It ruled Republic Act No. 11975, the 2024 General Appropriations Act (GAA), unconstitutional after Congress added P449.95 billion in unprogrammed appropriations.
The court also declared Republic Act No. 12116, the 2025 GAA, unconstitutional over a P17.99 billion increase in the Department of Public Works and Highways’ Special Road Fund exceeding the presidential recommendation.
Additionally, the court found a P12.75-billion increase in special accounts violated the Administrative Code provision barring Congress from augmenting amounts beyond the president’s proposal.
Unprogrammed appropriations themselves are not unconstitutional, the court ruled, but must have clear limits and safeguards to ensure fiscal discipline, transparency and accountability.
Such provisions become constitutionally infirm when they lack sufficient standards and grant the executive unchecked spending authority, potentially undermining programmed projects when projected revenues fall short.
The court emphasized that the constitutional budget ceiling covers the combined total of programmed and unprogrammed appropriations. It prohibited lump-sum allocations under unprogrammed appropriations and required Congress to establish clear spending priorities within the national fiscal program.
In a separate petition filed by Caloocan City 2nd District Rep. Edgar Erice and Mamamayang Liberal Party-list Rep. Leila De Lima, the court partly granted a challenge to Chapter XLIII of the 2026 GAA, which authorizes unprogrammed appropriations. It permanently barred the Senate, House of Representatives, Office of the Executive Secretary and acting Department of Budget and Management secretary from implementing Special Provisions 1(a) and (b) of that chapter.
ACT Teachers Party-list Rep. Antonio Tinio welcomed the ruling as a significant check on both branches amid the flood control corruption scandal.
“The party’s over,” Tinio said, adding that the abuse enabling the scandal resulted from cooperation between the legislature and Malacañang on budget matters.
He said the ruling reaffirmed the need for accountability on both sides — Congress for budget insertions and the executive branch for signing the budget, releasing funds and selecting projects.
The court applied the doctrine of operative fact to the 2024 and 2025 budget laws, protecting only irreversible programs whose beneficiaries acted in good faith.
However, the doctrine does not shield authors, proponents or implementors of unconstitutional provisions from liability unless tribunals establish they acted in good faith. (davaotoday.com)
