Senate President Sherwin Gatchalian announces plans to remove unconstitutional lump-sum appropriations from the 2027 national budget, adhering to Supreme Court directives.
In response to a recent Supreme Court ruling declaring certain provisions of the 2024 and 2025 Philippine national budgets unconstitutional, the Senate has committed to removing lump-sum funds from the 2027 budget. Senate President Sherwin Gatchalian emphasized that appropriations cannot exceed the president’s proposed budget, a principle upheld by the court. He affirmed that lump-sum funds, particularly those allocated through the Strengthening Assistance for Government Infrastructure and Social Programs (SAGIP), which funded flood control and other infrastructure projects, will no longer be included as they were ruled unconstitutional.
Despite this, unprogrammed appropriations will remain in the budget but strictly within the Supreme Court’s parameters. These funds, typically accounting for about 2% to 5% of the national budget, serve as financial flexibility for unforeseen government expenditures. The Senate will also scrutinize allocations for foreign-assisted projects, such as subway and railway systems, which have been reduced with some funding transferred to unprogrammed appropriations.
Legal expert Camille Ting explained that under the doctrine of operative fact, projects implemented in good faith under the unconstitutional budgets will remain valid, and funds already spent will not require reimbursement. This ruling seeks to ensure fiscal responsibility and constitutional compliance in budget formulation moving forward, while protecting ongoing government projects vital for economic development.
Sources referenced:
- https://www.gmanetwork.com/news/topstories/nation/1007111/senate-vows-to-scrap-lump-sum-funds-in-2027-budget-after-sc-ruling/story/