President Ferdinand Marcos Jr. has vetoed nearly ₱92.5 billion in unprogrammed appropriations from the 2026 national budget, reinforcing his administration’s effort to keep discretionary spending at what he described as the absolute bare minimum.
Marcos signed the ₱6.793-trillion General Appropriations Act (GAA) for 2026 into law on January 5, 2026, at Malacañang Palace. While approving the overall budget, he exercised his veto power to remove several conditional and unprogrammed allocations that had been restored during bicameral deliberations.
Breakdown of Vetoed Items
During a press briefing, Executive Secretary Ralph Recto provided a detailed list of the specific line items struck out from the 2026 GAA. According to Recto, the vetoed items include the following:
- ₱6.895 million in budgetary support for Government-Owned or Controlled Corporations (GOCCs)
- ₱4.32 billion in fiscal support for the Comprehensive Automotive Resurgence Strategy (CARS) program
- ₱2 billion allocated for insurance coverage of government assets
- ₱14 million representing prior years’ shares of local government units (LGUs)
- ₱250,000 for the RAISE program
- ₱35.769 million for Government of the Philippines (GOP) counterpart funding for foreign-assisted projects
- ₱43.345 billion earmarked for personnel services (PS) requirements
- ₱80 billion for the Strengthening Assistance for Government Infrastructure and Social Programs (SAGIP)
- ₱6.7 billion for Public Health Emergency Benefits
- ₱2 billion for the Marawi Siege Victims’ Compensation Fund
Recto said these allocations were removed to tighten fiscal controls and prevent funds from being treated as open-ended spending authority.
Push for Fiscal Discipline
The President earlier emphasized that unprogrammed appropriations should never function as automatic releases or “blank checks,” stressing that any remaining funds under this category will only be released if specific revenue and fiscal conditions are met.
Marcos also directed government agencies to adopt stronger fiscal discipline, noting that careful budgeting is necessary to ensure public funds are spent on clearly defined national priorities and transparent development programs.
Legislative Reaction
Senate President Vicente Sotto III welcomed the veto, saying the move could lead to one of the most disciplined national budgets in recent years. He added that limiting large discretionary allocations strengthens accountability in public spending.
What Unprogrammed Appropriations Mean
Unlike regular budget items, unprogrammed appropriations are not automatically available for use. These funds may only be accessed if the government exceeds its revenue targets or meets specific financial benchmarks. While they provide flexibility, such allocations have long been subject to scrutiny due to concerns over transparency and oversight.
With the vetoed items removed, the administration has positioned the Marcos budget 2026 at bare minimum as one focused on accountability, fiscal restraint, and targeted spending, aiming to ensure that every peso serves a clear public purpose.
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