Ralph‘s magic

Ralph‘s magic | Daily Tribune

As the nation prepared for Christmas cheer, the unwrapping of the 2024 national budget revealed something far less festive. From enabling the raiding of government-owned firms to the disbursement of funds for projects lodged under Unprogrammed Appropriations (UA), Executive Secretary Ralph Recto played a central role in what critics describe as a carefully staged sleight of hand.

A retired associate justice said prosecuting Recto for allegedly architecting a scheme to slip pork barrel projects into the 2024 budget would be difficult because there was no paper trail. Still, the pattern, critics argue, was clear from the beginning.

The UA ballooned to an unprecedented P731 billion in the 2024 budget, far above the P281.9 billion proposed in the National Expenditure Program. Regular budget items, including flagship infrastructure projects, were transferred out to make room for pet projects, largely flood-control structures under the Department of Public Works and Highways.

To fund the bloated UA, the bicameral conference committee, of which Recto was a member in his capacity as Batangas representative and deputy speaker, inserted a provision into the General Appropriations Bill.

Special Provision 1(d) under Chapter XLIII, or Unprogrammed Appropriations, of Republic Act 11975 authorized the Department of Finance to identify and direct the remittance of excess reserve funds from government-owned or controlled corporations to the Bureau of the Treasury.

These funds were then used to bankroll items under the UA, which are supposed to be standby funds released only upon specific conditions such as excess revenues or fund transfers.

On 12 January 2024, shortly after the holiday season, Recto became finance secretary and issued Circular 003-2024, ordering GOCCs, notably PhilHealth, to remit excess funds. The transfers to the National Treasury triggered the release of UA funds for various projects.

On 5 December 2025, the Supreme Court struck down Special Provision 1(d) and the Department of Finance circular, ruling that both were unconstitutional as an ambiguous rider.

“The insertion of the special provision did not happen by chance. It was intentional. And it never appeared before,” the retired justice said. “You have to prove to charge Recto as part of the conspiracy to insert Special Provision 1(d) of the UA. This unique provision first appeared in the 2024 budget and never appeared again.”

He explained that neither the National Expenditure Program nor the General Appropriations Bill contained the provision.

It emerged only during bicameral deliberations, where Recto sat alongside Ako Bicol Partylist Rep. Zaldy Co as chairperson and Marikina Rep. Stella Quimbo as senior member.

Recto has defended the transfer of excess funds, including P89.9 billion from PhilHealth and P117 billion from the Philippine Deposit Insurance Corp., saying he merely followed the law.

Critics counter that the conspiracy to siphon special funds took shape when Recto was a member of the 2023 bicameral committee that crafted the provision and was completed in 2024 when, as finance secretary, he ordered its implementation.

For a season meant to symbolize goodwill and generosity, the episode instead left many Filipinos feeling that the real gifts had gone to a well-connected few.