Palace seeks SC review of unprogrammed funds ruling

Malacañang on Wednesday said it would seek reconsideration of the Supreme Court's ruling on unprogrammed appropriations, arguing that the decision imposed restrictions that could render the government's funding mechanism unusable.

Palace Press Officer Claire Castro said the Marcos administration respects the High Court but disagrees with certain portions of its decision concerning the 2024, 2025 and 2026 national budgets.

“The Supreme Court’s decision is clear. Unprogrammed appropriations are not inherently unconstitutional. The Supreme Court has not declared them unconstitutional. Therefore, they remain a legitimate vehicle for government funding,” Castro said in remarks translated from Filipino.

She stressed that the use of unprogrammed funds must comply with constitutional requirements, existing laws and accountability safeguards.

However, Castro argued that the Court's interpretation effectively restricted the government's ability to use the funding mechanism.

“In our view, it kept the mechanism on paper, but imposing conditions beyond those set by Congress since 2015 would not only make its use more difficult. It has rendered this mechanism useless and unusable for government programs,” she said.

According to Castro, Congress has allowed the release of unprogrammed appropriations when collections from at least one specified non-tax revenue source exceed their targets, subject to other legal conditions.

She maintained that the Marcos administration merely followed the policy established by Congress.

Castro also disputed the Court's requirement that total revenue collections must first exceed the overall revenue target before unprogrammed appropriations can be released.

She argued that the requirement effectively changed the conditions set by Congress, which holds the constitutional authority to formulate the annual national budget.

“We respectfully request the Supreme Court to reconsider its decision,” Castro said.

She confirmed that the Office of the Solicitor General had been directed to file a motion for reconsideration.

In a decision penned by Senior Associate Justice Marvic Leonen, the Supreme Court declared unconstitutional Congress' P449.5-billion increase in unprogrammed appropriations under the 2024 national budget.

The Court also struck down a P17.99-billion increase in the Department of Public Works and Highways' Special Road Fund under the 2025 budget.

The increases were found to have violated the constitutional prohibition against Congress increasing appropriations beyond the amount recommended by the President.

The High Court likewise invalidated certain provisions of the 2026 General Appropriations Act governing the release of unprogrammed funds, citing inadequate safeguards against unauthorized spending.

The Palace maintained that while unprogrammed appropriations remain a legitimate budgetary mechanism, the Supreme Court should reconsider the conditions governing their release.