Lacson: Veto of nonessential unprogrammed funds strengthens fiscal discipline, curbs patronage

Senate President Pro Tempore Panfilo “Ping” Lacson on Monday welcomed President Ferdinand Marcos Jr.’s veto of non-essential items under the unprogrammed appropriations in the 2026 national budget, saying the move strengthens fiscal discipline and curbs political patronage.

Lacson expressed support for the provisions that survived the veto in Republic Act 12314, particularly funding for government support to foreign-assisted projects and the revised Armed Forces of the Philippines (AFP) Modernization Program, which he said are vital to economic development and national security.

Of the P243.4 billion originally allocated under unprogrammed appropriations, Marcos vetoed P92.5 billion, or 38 percent. The remaining P150.905 billion covers three major items: P97.3 billion for government support to foreign-assisted projects, P3.6 billion for the Program on Risk Management, and P50 billion for the revised AFP Modernization Program.

“P150.905 billion is the exact amount that survived the veto,” Lacson said, noting that all other seven items under unprogrammed appropriations were removed. 

“We need the government support to foreign-assisted projects and the revised AFP Modernization Program as our commitments to our economic development and national security,” he added.

Lacson further stressed that he was amenable to the veto of P35.769 billion earmarked as the government’s counterpart for foreign-assisted projects, saying it “could be a duplication” of existing support for such projects.

During budget deliberations last December, Lacson had pushed to trim unprogrammed allocations to include only what he described as legitimate and necessary items, particularly foreign-assisted projects and AFP modernization.

He also welcomed the President’s directive to strictly enforce the prohibition on political involvement in the distribution of cash and other forms of financial assistance, commonly known as “ayuda.”

“We welcome the provision on the prohibition on political involvement in the distribution of cash and other forms of financial assistance as it will ensure that assistance reaches its intended beneficiaries fairly, transparently, and solely on the basis of need,” Lacson said. He added that the Senate bicameral conference committee stood firm on the provision after he pushed for amendments aimed at curbing political patronage in health and social assistance.

Because of these measures, Lacson said he was “happy and satisfied” with the outcome of the budget process.

President Marcos signed Republic Act 12314 into law on Monday. Executive Secretary Ralph Recto said only three major items remained under the unprogrammed fund, totaling P150.905 billion—an amount he noted is comparable to levels in 2019.

Lacson also emphasized that unprogrammed appropriations are non-cash items that may be used only under specific conditions: if there is an excess in non-tax revenue collections, if there is an accompanying revenue measure, or if there is an approved loan. 

He added that only the President is authorized to approve the use of unprogrammed appropriations to augment items in the regular budget.

He recalled that unprogrammed appropriations became controversial under the 2024 General Appropriations Act after the bicameral conference committee added what he described as “highly questionable, even unconstitutional” special provisions. 

These included provisions involving government-owned and controlled corporations that allowed the transfer of Philippine Health Insurance Corp. funds to the national treasury for infrastructure projects, as well as provisions on foreign-assisted projects that, he said, could have led to misuse if funds were disbursed for purposes other than those intended.