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OSG seeks clarification on budget ruling, advises agencies to hold unprogrammed funds pending appeal

  • Jade Reyes
  • Nation
  • October 22, 2026

The implementation of several government programs and projects under the current year’s budget may face delays following a Supreme Court decision declaring portions of the General Appropriations Act (GAA) for 2024 and 2025 unconstitutional, along with certain provisions of the 2026 budget.

Solicitor General Darlene Marie Berberabe said Thursday during a Palace briefing that the Office of the Solicitor General (OSG) will seek clarification from the High Court and file a motion for reconsideration to assess the ruling’s impact on both current and future budget execution.

“Ang responsibilidad ng ehekutibo ay mag-propose at mag-execute; ang Kongreso naman, magpasa ng GAA o magpasa ng batas. Ngayon po, nasa execution stage na, ang may responsibilidad dito ay ehekutibo,” Berberabe said.

“So, mayroon po kasing gusto lalo na ang ating Presidente na linawin sapagkat iyong execution ng budget ay maaapektuhan,” she also added.

Asked about specific programs or projects that could be impacted, Berberabe said the Department of Budget and Management (DBM) is preparing a preliminary list, which the OSG will review during a joint meeting on Monday.

The DBM noted in a separate statement that it is carefully reviewing the Supreme Court’s decision to assess its legal, fiscal, technical, and operational implications and determine appropriate next steps.

“Further updates will be provided once the review has been completed and the necessary consultations have been undertaken,” the DBM added.

Pending the appeal, Berberabe advised executive agencies to put on hold potential projects and programs intended to be funded through unprogrammed appropriations.

“Ang ipapayo po namin sa DBM at sa ehekutibo ay pumorma na tayo na parang huwag muna tutal aasahan na madesisyunan ito kaagad,” Berberabe said.

She expressed confidence that the High Court will promptly resolve the matter, given that the execution of this year’s budget is directly affected.

However, the Solicitor General clarified that ongoing projects already funded using unprogrammed appropriations should not be halted if implementation began prior to the ruling.

“Kung halimbawang parang phasing lang siya, sa akin pong pakiwari, ay dapat itutuloy na iyon kasya hininto. Kasi kumbaga parang in-implement naman siya, phasing lamang tinamaan ng Supreme Court decision doon sa next phase,” Berberabe said after Palace Press Officer Claire Castro asked if projects already 60 percent complete would be suspended.

The Supreme Court ruling, which stemmed from a petition filed by Representatives Edgar Erice and Leila De Lima challenging Chapter XLIII of the 2026 GAA, stated that unprogrammed appropriations are not unconstitutional per se.

“However, this budgetary item needs clear limits and safeguards to preserve fiscal discipline, transparency, and accountability,” the High Court said.

“They become constitutionally infirm when they lack sufficient standards, effectively granting the Executive unchecked spending authority that weakens fiscal discipline and undermines funding for programmed projects when estimated government revenues are not realized,” the High Court also added.

The decision affirmed that the constitutional budgetary ceiling under Article VI, Section 25(1) applies to the total sum of both programmed and unprogrammed appropriations.

Under these standards, the Supreme Court ruled the 2024 national budget unconstitutional due to a P449.5-billion congressional increase in unprogrammed appropriations, while the 2025 GAA was declared unconstitutional over an approved P17.99-billion hike in the Special Road Fund.

Berberabe emphasized that the ruling is not yet final, noting that President Ferdinand R. Marcos Jr. intends to comply with the decision but requires clear guidance on its scope to prevent improper releases or failure to disburse valid funds.

Addressing whether the executive branch would raise the issue of judicial overreach, Berberabe said the argument remains under review by legal officers.

“So, ang amin lamang pong gustong idiin at hilingin na repasuhin nila baka po may mga guardrails na dapat ay ipaubaya na lamang doon sa dalawang branches which are the political branches—ibig sabihin po ng political branches ito po ay Kongreso at Presidente na inihalal po ng ating taumbayan,” Berberabe said.

“Sila po ang inatasan ng Konstitusyon na, ‘Oh Presidente, ikaw ang magpiprepara ng budget’ at ‘Congress, O ikaw naman ang magsabi ng ano ba ang mga priorities’ … So, ito po ay buong respeto namin at buong humility na atin pong ihihiling sa Supreme Court na marepaso,” she also added.

Palace Press Officer Claire Castro previously noted that Malacañang is seeking clarification on conditions imposed by the High Court that go beyond mechanisms established by Congress since 2015, which she said make the use of unprogrammed funds extremely difficult and effectively inoperative for government operations.

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