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Palace Challenges Supreme Court’s Ruling on Unprogrammed Funds

Manila:Malacañang has expressed disagreement with a recent Supreme Court ruling that declared unprogrammed appropriations in the national budgets for 2024, 2025, and 2026 as 'unconstitutional'. The Office of the Solicitor General (OSG) has been directed to file a motion for reconsideration.

According to Philippines News Agency, Palace Press Officer Claire Castro stated that the administration believes the Supreme Court has imposed conditions that exceed those established by Congress, thus rendering unprogrammed appropriations unusable. She emphasized the administration's respectful request for the Supreme Court to review its decision and confirmed that the OSG will file the necessary motion.

Castro noted that the administration recognizes the Supreme Court's stance that unprogrammed appropriations are not inherently unconstitutional. However, she argued that the ruling's conditions significantly restrict their use. She pointed out that Congress had allowed the release of such funds since 2015 when collections exceeded targets from specific non-tax revenue sources, subject to legal conditions.

Furthermore, Castro asserted that the Marcos administration was merely adhering to existing appropriation rules. She argued that the Supreme Court's requirement for aggregate revenue collections to exceed overall revenue targets before releasing unprogrammed appropriations effectively alters the conditions set by Congress.

When questioned about the President's responsibility for signing budgets with provisions now challenged by the Supreme Court, Castro insisted that the administration acted within legal boundaries and saw no basis for holding the President accountable.

The Supreme Court's ruling invalidated budget provisions involving unprogrammed appropriations and certain increases in the 2024 and 2025 General Appropriations Acts. It also struck down key provisions regarding the release of unprogrammed funds under the 2026 budget, clarifying that while unprogrammed appropriations are not unconstitutional per se, they must comply with constitutional limits and safeguards.

Castro refrained from commenting on Associate Justice Ramon Paul Hernando's separate opinion labeling unprogrammed appropriations as prone to graft and corruption. She stated that the administration's motion would focus on the Supreme Court's actual ruling.

In response to inquiries about government disclosure of unprogrammed fund expenditures for 2024, 2025, and 2026, Castro affirmed that public officials are obligated to account for government spending, highlighting that these expenditures should not be kept confidential from the public.

Source Philippines News Agency