Unprogrammed Funds in 2026 Budget Affirmed as Constitutional by DBM

Manila: The Department of Budget and Management (DBM) has asserted that the unprogrammed appropriations (UA) included in the 2026 General Appropriations Act (GAA) are both constitutional and clearly defined. This statement was issued in response to a legal challenge posed by Caloocan 2nd District Rep. Edgar Erice and Mamamayang Liberal Rep. Leila De Lima, who have petitioned the Supreme Court to declare these appropriations unconstitutional.

According to Philippines News Agency, Erice and De Lima's petition seeks to nullify Section XLIII of the 2026 GAA, arguing that its inclusion contravenes the Constitution. They are also requesting a temporary restraining order and other legal remedies to prevent the implementation and expenditure of UA funds, citing potential constitutional violations and irreparable harm.

The DBM emphasized its respect for the legal process but highlighted that the Supreme Court has previously upheld the legality of unprogrammed funds. Citing the Belgica vs. Executive Secretary ruling from October 8, 2019, the DBM noted that the Court found these appropriations constitutional, as they are accompanied by an annex detailing their specific public purposes and corresponding amounts.

The DBM reiterated its commitment to constitutional principles, fiscal prudence, and transparency in budget implementation. It explained that unprogrammed appropriations function as a contingency fund, activated only from excess revenues and under stringent fiscal conditions.

The agency pointed out that the 2026 GAA has significantly reduced the UA to PHP150.9 billion, a decrease from PHP363.4 billion in 2025, and substantially lower than the pandemic peak of PHP807.2 billion in 2023. President Ferdinand R. Marcos Jr.'s recent measures, including vetoing PHP92.5 billion worth of proposed UA items, underscore the administration's commitment to fiscal discipline and preventing discretionary spending.