The Supreme Court has declared unconstitutional the 2024 and 2025 national budget laws due to congressional increases in appropriations, while striking down specific provisions authorizing unprogrammed appropriations under the 2026 General Appropriations Act (GAA).
In a press briefer, the High Court said the 2024 budget was unconstitutional because Congress increased unprogrammed appropriations by ₱449.5 billion, while the 2025 budget was invalidated over a ₱17.99-billion increase in the Department of Public Works and Highways’ Special Road Fund.
The Court also declared unconstitutional Special Provisions 1(a) and (b) under Chapter XLIII of the 2026 GAA and permanently prohibited the Senate, House of Representatives, Office of the Executive Secretary, and Department of Budget and Management from implementing them.
The decision, written by Senior Associate Justice Marvic M.V.F. Leonen, clarified that unprogrammed appropriations are not inherently unconstitutional but must be subject to safeguards.
“Unprogrammed Appropriations are not unconstitutional per se. However, this budgetary item needs clear limits and safeguards to preserve fiscal discipline, transparency, and accountability,” the Court said.
It stressed that such appropriations must not contain lump sums and must follow clear standards for prioritizing expenditures, ensuring that government spending remains within constitutional limits.
The Court also ruled that the doctrine of operative fact applies to the 2024 and 2025 budgets only for irreversible programs whose beneficiaries acted in good faith, without automatically shielding the laws’ authors, proponents, or implementers from potential criminal, civil, or administrative liability.
