Senate vows to scrap lump-sum funds in 2027 budget after SC ruling

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The Senate has vowed to eliminate lump-sum funds from the 2027 national budget, Senate President Sherwin Gatchalian said Sunday, following a Supreme Court ruling declaring certain provisions of the 2024 and 2025 national budgets unconstitutional.

The high court also ruled on provisions allowing unprogrammed appropriations in the 2026 budget.

“The bottom line is that the Supreme Court said appropriations cannot exceed the budget proposed by the president,” Gatchalian told Super Radyo dzBB.

“For 2027, we will ensure that there are no lump-sum funds because they are unconstitutional,” he added.

Gatchalian said a significant portion of the 2024 and 2025 budgets was allocated to the Strengthening Assistance for Government Infrastructure and Social Programs (SAGIP), which was identified as a source of funding for flood control projects.

The senator said, however, that unprogrammed appropriations would remain in the budget, provided they comply with the conditions set by the Supreme Court.

"There will still be unprogrammed appropriations. The Supreme Court did not say these are prohibited or unconstitutional. It merely set parameters, which we will follow,” Gatchalian said.

He said the Senate would also carefully review the allocation for foreign-assisted projects, which had been reduced, with funding transferred to unprogrammed appropriations.

"This is the funding used to build subways and railways. It is important because, without funding, we cannot complete these projects,” he said.

"That is something we are studying carefully. I believe next year's projects are important because we need to accelerate economic growth,” he added.

According to Gatchalian, unprogrammed appropriations account for about 2% to 5% of the total national budget.

Meanwhile, lawyer Camille Ting said the doctrine of operative fact would apply following the Supreme Court's declaration that the 2024 and 2025 General Appropriations Acts (GAAs) were unconstitutional.

“Under this doctrine, good-faith projects already implemented and no longer reversible remain valid. Applying this doctrine, irreversible programs in the 2024 and 2025 GAAs whose beneficiaries acted in good faith are valid,” she said.

Ting added that the ruling would not require the return of funds spent on such programs.

“There will be no funds returned in that case,” she said.— MCG, GMA News

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