PBBM vetoes P92.5B unprogrammed funds in 2026 nat’l budget

By Brian Campued

To ensure that public funds are “expended in clear service of national interests,” President Ferdinand R. Marcos Jr. has vetoed nearly P92.5 billion in Unprogrammed Appropriations (UAs) under the 2026 national budget.

In a speech after the signing of the 2026 General Appropriations Act (GAA) at Malacañan Palace on Monday, the President acknowledged Congress’ efforts to limit unprogrammed funds to “essential needs” but underscored the need to “push further and reduce it to the absolute bare minimum.”

With the veto, the UAs in the 2026 GAA were trimmed down to around P150.9 billion—the lowest level since 2019.

“Let me be clear: the Unprogrammed Appropriations are not blank checks,” Marcos Jr. said. “We will not allow the Unprogrammed Appropriations to be misused or treated as a backdoor for discretionary spending.”

He stressed that UAs must only be utilized when “clearly defined triggers and tests are met,” noting that releases of these funds will be transparent. 

“My administration will enforce these safeguards without exception to serve the public interest and to advance our national development goals,” he said.

The Chief Executive also directed all concerned agencies and departments of the national government to exercise “prudent fiscal management to ensure uninterrupted quality public service.”

According to Executive Secretary Ralph Recto, the following items under the UA were vetoed by the President:

• Budgetary support to GOCCs – P6.895 million
• Comprehensive Automotive Resurgence Strategy (CARS) program – P4.32 billion
• Insurance for government assets – P2 billion
• Prior Years’ Local Government Unit Shares – P14 million
• Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program— P250,000
• Government Counterpart for Certain Foreign-Assisted Projects – P35.769 billion
• Payments of Personal Services Requirements – P43.245 billion
• Strengthening Assistance for Government Infrastructure and Social Programs (SAGIP) – P80 billion
• Nampedai property – P210 million
• Public health emergency benefits – P6.7 billion
• Marawi siege victims’ compensation under the National Expenditure Program (NEP) – P2 billion

Meanwhile, UAs for Support to Foreign-Assisted Projects (P97.305 billion), Revised Armed Forces of the Philippines Modernization program (P50 billion), and Risk Management Program (P3.6 billion) were retained.

In a press briefing, Acting Department of Budget and Management (DBM) Sec. Rolando Toledo said the part of the retained UAs will be used for the sustained implementation of foreign-assisted flood control projects, as contracts must be followed.

The Department of Public Works and Highways (DPWH) previously clarified that there will be no funding for new flood control projects in 2026—emphasizing that around P2.49 billion is allocated only for the maintenance and other operating expenses (MOOE) of existing flood control structures and drainage systems, as well as programs including the “Oplan Kontra Baha.”

Recto likewise assured that delivery of government programs will not be affected by the vetoing of unprogrammed funds.

“Wala naman, wala akong nakikita dahil unang-una, sa tingin ko, walang excess revenue na ganoon kalaki. Kaya kahit na ilista pa natin iyan sa UA, palagay ko sapat na iyong makokolekta lang natin para sa program at walang masyadong excess revenue, kaya hindi na kailangan iyan sa unprogrammed funds,” he said.

Toledo added, “What was vetoed are the unprogrammed appropriations; it’s not from the program appropriations. So hindi siya maaantala, iyong ating mga programa na inaprubahan ng Presidente.”

-jpv