The government will be operating on a budget in 2024 that is higher by half a trillion pesos compared to 2023's 5.26 trillion.

Amid criticisms from senators who claimed the P450-billion addition to unprogrammed funds in the 2024 budget violated the Constitution, President Ferdinand Marcos Jr. on Wednesday signed into law the 2024 General Appropriations Act, or GAA, totaling a hefty P5.768 trillion.

During the signing ceremony, Marcos sternly warned against inefficiencies and corruption in government, urging budget implementers to avoid red tape and prioritize legal compliance.

"Debt is not the kind of inheritance we want for those who will come after us. Good fiscal stewardship imposes upon us discipline not to be led into the temptation of bloating what we owe," Marcos said in his speech, urging government agencies to avoid reckless borrowing and implement fiscal discipline.

He added: "Remember, we are not working for ourselves but for the people and the country. We must honor the taxpayers who make this budget possible."

The national budget for 2024, which the Senate and the House approved on 11 December, is 9.5 percent higher than this year's budget, according to the Department of Finance.

Senate Committee on Finance chairperson, Senator Sonny Angara, said the confidential and intelligence funds for non-military agencies were not included in the consolidated version of the 2024 General Appropriations Bill.

Funding priorities

The 2024 budget, according to the Department of Budget and Management, prioritizes funding for economic expansion and addresses the consequences of inflation.

Budget Secretary Amenah Pangandaman on Wednesday said the P450 billion increase in the unprogrammed appropriations of the 2024 budget has built-in safeguards to prevent unconstitutional spending.

Responding to criticism from senators on the unconstitutionality of the additional P450 billion to unprogrammed funds, Pangandaman said the unprogrammed funds are not automatically allocated.

They are subject to "triggers" — conditions that must be met before they can be released.

"Unprogrammed funds are estimates and projections used to create the budget," Pangandaman told Palace reporters after President Marcos signed the 2024 GAA.

"(These funds) are meant for unforeseen projects and programs that may arise throughout the year, and they can only be accessed if there are additional revenues beyond what we've already estimated," Pangandaman added.

This safeguard aligns with the department's position and finds support from members of both the House and Senate, Pangandaman said.

By linking the release to revenue increases, Pangandaman said the government ensures that spending stays within legal limits and avoids exceeding the Budget of Expenditures and Sources of Financing.

Unconstitutional

Former Senator Ping Lacson had argued last week that the bicameral conference committee's decision to add P450 billion to the unprogrammed appropriations in the 2024 budget was unconstitutional, echoing Senate Minority Leader Aquilino "Koko" Pimentel III.

Lacson said Congress may not increase the appropriations suggested by the President for government operations as outlined in the budget, citing Article VI Section 25 of the 1987 Constitution.

The Presidential Communications Office has yet to release a copy of the GAA to the media as of press time.

No direct vetoes by BBM

Pangandaman said the 2024 national budget was approved with "no direct vetoes" by the President.

The President, she added, only made conditional and general observations.

"The general observations were more like minor comments on how to implement the budget. Conditional implementation usually involves special provisions and general provisions that state 'subject to implementing rules and regulations or guidelines to be issued by respective departments,'" she said.

"Some of the special general provisions reiterate existing laws. We just mentioned that these were repetitions," Pangandaman said.

She said the budget prioritizes the government's 8-point socio-economic agenda and the Medium-Term Fiscal Framework, with education receiving the largest allocation of around P900 billion.

Infrastructure development, dubbed "Build, Better, More," also gets a sizeable chunk of P800 billion.

Around P500 billion of the total budget has been earmarked for various cash assistance or ayuda programs under the Department of Social Welfare and Development.

On debt

Addressing concerns about fiscal prudence, Pangandaman assured the public that the 2024 national budget prioritizes responsible debt management while supporting the post-pandemic recovery.

Pangandaman echoed Marcos' commitment to leaving a legacy free of burdensome debt for future generations. She emphasized the alignment of the 2024 budget with the Medium-Term Fiscal Framework, or MTFF, a roadmap for gradual deficit reduction.

"Our MTFF started with a very tight deficit, exceeding 7 percent during the pandemic," Pangandaman explained.

She added: "We're making steady progress, aiming to bring it down to 3 percent by 2028. Reducing the deficit translates to less borrowing, but responsible borrowing for productive purposes remains crucial."

While the exact borrowing figure for 2024 is still being finalized, Pangandaman confirmed a projected decrease in the deficit from 6.1 percent in 2023 to a target of slightly above 5 percent. She said this demonstrates the administration's commitment to fiscal consolidation over the long term.

Meanwhile, Marcos emphasized the importance of efficient implementation, urging budget officials to avoid both underspending and overspending "that disregard legal guardrails and are two sides of the same coin."

He said that delaying projects "inflicts the same havoc" of denying the people the progress and development they deserve.

He acknowledged the limitations of the national budget, saying that it could not fully fund all his plans for the country.

However, he emphasized that every line item in the budget would address critical issues like poverty, illiteracy, hunger, and border security.

"This budget is more than a spreadsheet of amounts or a ledger of projects," Marcos said.