Marilyn Cahatol

President Ferdinand Marcos Jr. delivers his State of the Nation Address at the Opening of the 19th Congress on July 24, 2023. The President is accompanied by Senate President Juan Miguel Zubiri and House of Representatives Speaker Ferdinand Martin Romualdez. Jonathan Cellona, ABS-CBN News

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Monsod: Unprogrammed appropriations in 2024-2026 budgets 'terrible for good governance'

Adrian Ayalin

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px;display:block"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/17755451364921775545133220.jpeg" style="width:960px" class="fr-fic fr-dib" alt="President Ferdinand Marcos Jr. delivers his State of the Nation Address at the Opening of the 19th Congress on July 24, 2023. The President is accompanied by Senate President Juan Miguel Zubiri and House of Representatives Speaker Ferdinand Martin Romualdez. Jonathan Cellona, ABS-CBN News"/><span class="fr-inner" style="text-align:left">President Ferdinand Marcos Jr. delivers his State of the Nation Address at the Opening of the 19th Congress on July 24, 2023. The President is accompanied by Senate President Juan Miguel Zubiri and House of Representatives Speaker Ferdinand Martin Romualdez. <em>Jonathan Cellona, ABS-CBN News</em></span></span></span>MANILA (<strong>UPDATED</strong>) — Economist and former director general of the National Economic and Development Authority Winnie Monsod warned the Supreme Court against the consequences of unprogrammed appropriations in the 2024, 2025 and 2026 General Appropriations Act.</div><p>Monsod, along with former Senate president Franklin Drilon and former Department of Budget and Management secretaries Benjamin Diokno and Butch Abad were invited by the court as “amici curiae” or “friends of the court” in the oral arguments on the questioned 2024-2026 national budget.</p><p>Monsod enumerated the direct consequences of the unprogrammed appropriations, which include weakening of budget transparency, blurring institutional accountability, undermining fiscal discipline.</p><p>She also noted the study of the Congressional Policy and Budget Research Department of the Philippines Institute for Development Studies which noted the “rapid expansion” in recent years of unprogrammed appropriations caused significant implications on transparency, accountability and fiscal discipline.</p><p>“The way I read it, that means, you know, it’s terrible for good governance,” Monsod said.</p><p>Monsod also likened the unprogrammed appropriations to the pork barrel system which was struck down by the Supreme Court in 2013.</p><p>“The bottom line here, the pork barrel is bad news, either in the form of unprogrammed appropriations or DPWH infrastructure projects, the projects are either overpriced or poor quality so there is a waste of fiscal funds,” Monsod said.</p><p>Monsod also said investments did not maximize social welfare but instead resulted to “private personal gains.”</p><p>“In the meantime, the Filipino people are robbed, not only at present but in the future because this  huge, larger, budget deficits and the larger debt stock to GDP ratio is going to further constrain the fiscal space later and will constrain the ability of the government to give the Filipino people what they need. Costs of UA, so much larger than benefits,” Monsod said.</p><div><br/></div><div><strong>NOT &#x27;INHERENTLY UNCONSTITUTIONAL&#x27;</strong></div><p>The Supreme Court called for the<a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/nation/2026/1/23/oral-arguments-set-on-petitions-questioning-2026-budget-0927"> oral arguments</a> following the consolidation of four petitions against certain provisions of the 2024 to 2026 budgets.</p><p>The petitioners sought to nullify various adjustments made by the Bicameral Conference Committees that increased the budget for three years.</p><p>In the 2024 budget, petitioners questioned the bicameral insertion of P449.5 billion.</p><p>In the 2025 budget, the increased line item appropriation for the Department of Public Works and Highways Special Road Fund from P16 to P34 billion was assailed.</p><p>Diokno for his part stressed that unprogrammed appropriations have been in existence since 1987 but the increases over the last three years have been particularly large.</p><p>“This is not to argue that Congress may increase the unprogrammed appropriations as requested by the executive, this is only meant to reflect the monumental abuses done by Congress during the last three years, 2023, 2024 and 2025 national budgets,” Diokno said.</p><div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/business/2026/2/7/acting-dbm-chief-rejects-calls-to-scrap-unprogrammed-appropriations-in-2027-national-budget-0834">Acting DBM chief rejects calls to scrap unprogrammed appropriations in 2027 national budget</a></div><p>Drilon also noted that the unprogrammed appropriations have been a consistent feature in the national budget in previous administrations. But he stated that recent unprogrammed appropriations include funding for regular agency operations such personnel benefits.</p><p>Drilon said unprogrammed funds are not “inherently unconstitutional.”</p><p>“In this perfect storm, the violation is not found in the text of the law but in the arithmetic of its execution,” Drilon said.</p><div><br/></div><div><strong>&#x27;A SHADOW BUDGET&#x27;</strong></div><p>For the petitioners, the Supreme Court should declare the unprogrammed funds provisions in the GAA as unconstitutional.</p><p>Atty. Jerico Salenga, counsel for one of the petitioners, likened the national budget to an ordinary Filipino family’s budget which needs discipline.</p><p>Salenga stressed that Congress may not increase appropriations recommended by the President, as stated in Section 25 Article VI of the Constitution.</p><p>“Ultimately, what emerges from this mechanism is a system that the Constitution does not recognize, a shadow budget that is contingent, expandable and dependent on discretion after enactment, public funds belong to the people and their use must be governed by clear constitutional limits, not by shifting conditions or post-enactment authority,” Salenga said.</p><p>Solicitor General Darlene Marie Berberabe, in response to the petitioners, underscored the importance of having two budget categories for a family - one for the basic needs and another for additional expenses, or unprogrammed funds.</p><p>Speaking in Filipino, Berberabe also stressed that the executive and legislative branches did not usurp each other&#x27;s function.</p><p>She also told the court that the legislative mechanism in the budgetary process should not be invalidated as the petitioners were not able to show conflict.</p><p>“Tungkulin ng Kapita-pitagan at Kataas-taassan Hukumang ito na bantayan ang mga linyang itinakda ng Konstitution, sa ganang amin, sa paghahandang tugunan ang pangangailangan ng sambayan gamit ang unprogrammed appropriations, isinaalang-alang ng ehekutibo at lehislatura ang mga linyang ito, sapagkat ang pagmamay-ari ng kaban ng bayan ay nasa sambayanan,” Berberabe said. </p><div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/nation/2026/1/8/2-lawmakers-file-sc-petition-to-declare-2026-unprogrammed-funds-unconstitutional-1120">2 lawmakers file SC petition to declare 2026 unprogrammed funds unconstitutional</a></div><p>In his interpellation, Senior Associate Justice Marvic Leonen discussed programmed appropriations which were transferred to unprogrammed appropriations amounting to P303 billion in 2024.</p><p>Leonen asked Diokno if it is important to have unprogrammed funds in the national budget.</p><p>“Definitely because any project delays is costly, for example, they removed funding for the subway system that&#x27;s supposed to be finished by 2029, right of way appropriation for the subway and also the North-South Railway System, they removed and they put it under unprogrammed, that will cost a delay of at least five years,” Diokno responded.</p><p>Due to lack of time the oral arguments will be continued on April 21, with former representative Joey Salceda as an additional amicus curiae, as announced by Chief Justice Alexander Gesmundo.</p><div><br/></div><div><strong>RELATED VIDEO:</strong></div><div style="text-align:center"><iframe width="560" height="315" src="https://www.youtube.com/embed/XZlwTeaHqL8?si=oDWu4aDEyxVeATaV" title="YouTube video player" frameBorder="0" allowfullscreen=""></iframe></div>

<p>Economist and former director general of the National Economic and Development Authority Winnie Monsod warned the Supreme Court against the consequences of unprogrammed appropriations in the 2024, 2025 and 2026 General Appropriations Act.</p>

Economist and former director general of the National Economic and Development Authority Winnie Monsod warned the Supreme Court against the consequences of unprogrammed appropriations in the 2024, 2025 and 2026 General Appropriations Act.