Manila: President Ferdinand R. Marcos Jr. has significantly reduced the Unprogrammed Appropriations (UA) in the 2026 national budget, marking the lowest level since 2019. This decision comes after vetoing nearly PHP92.5 billion worth of proposed items, aiming to reinforce fiscal discipline, transparency, and accountability.
According to Philippines News Agency, in a veto message to Congress accompanying the signing of the PHP6.793-trillion General Appropriations Act for 2026, President Marcos emphasized the reduction of UA to a 'bare minimum.' He stressed that standby funds should only be utilized when 'absolutely necessary and strictly in accordance with conditions set in this Act.'
The Department of Budget and Management data indicates a consistent tightening of UA allocations, dropping to PHP150.9 billion in 2026 from PHP363.4 billion in 2025. This is a significant decrease compared to PHP731.4 billion in 2024 and PHP807.2 billion in 2023.
President Marcos reiterated that UA funds 'are not blank checks' and cautioned against using them as a 'backdoor for discretionary spending' that could inflate the fiscal deficit beyond projections. He assured that the utilization of UA is safeguarded, with funds only available when specific triggers are met and released after thorough validation.
The vetoed items included proposed UA allocations for budgetary support to government-owned and controlled corporations, prior years' local government unit shares, personnel services requirements, insurance of government assets, and industry support programs such as the Comprehensive Automotive Resurgence Strategy and Revitalizing the Automotive Industry for Competitiveness Enhancement.
The President described the veto as a 'measured exercise of Executive authority to rebuild public trust in the budget process.' He instructed all agencies to practice prudent fiscal management to ensure uninterrupted public service.
President Marcos clarified that the vetoes will not impact scheduled salary and benefit increases for civilian government workers, military, and uniformed personnel. Additionally, funding for ongoing foreign-assisted and flagship infrastructure projects will remain unaffected, as these are already covered by programmed appropriations.
