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Supreme Court Ruling Limits Use of Unprogrammed Appropriations to Prevent Public Fund Abuse

Unique Times

House Deputy Minority Leader Leila de Lima praises Supreme Court decision restricting unprogrammed appropriations and prohibiting budget increments beyond the President's proposal, emphasizing enhanced fiscal discipline and transparency.

The Supreme Court of the Philippines has issued a landmark ruling restricting the use of unprogrammed appropriations (UA) in the national budget, reinforcing safeguards against the misuse of public funds. The decision prohibits Congress from increasing budget allocations beyond what the President proposes, effectively reinforcing fiscal discipline and transparency in government spending.

House Senior Deputy Minority Leader Leila de Lima, representing the Mamamayang Liberal (ML) party-list, welcomed the decision, calling it a significant win for accountability in public finance. She highlighted that the Court clarified unprogrammed appropriations cannot be lump sums and must be allocated for narrowly defined contingencies, with clear prioritization standards when multiple purposes exist.

De Lima was a co-petitioner in a consolidated case challenging the constitutionality of provisions in the 2024, 2025, and 2026 General Appropriations Acts (GAA) that authorized expanded unprogrammed allocations. The Court ruled that while unprogrammed appropriations are not inherently unconstitutional, they require strict limits and safeguards to preserve fiscal discipline and prevent their use as ‘slush funds.’

The ruling also voided the 2024 budget due to a PHP 449.5 billion increase in unprogrammed appropriations and struck down the 2025 GAA for an improper increase to the Special Road Fund under the Department of Public Works and Highways.

Senator Panfilo “Ping” Lacson remarked that the Supreme Court’s decision arrives at a critical time as the Senate reviews the House version of the 2027 national budget, underscoring the ruling’s role in promoting orderly and transparent budgeting.

This development underscores the Philippine government’s commitment to strengthening checks and balances within the budgetary process, aiming to prevent abuse and ensure responsible management of public resources.


Sources referenced:

  • https://www.gmanetwork.com/news/topstories/nation/1006637/de-lima-sc-limiting-use-unprogrammed-funds-prevents-abuse-of-public-funds/story/
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