Philippine Supreme Court limits congressional spending power

The Philippine Supreme Court has ruled that Congress cannot exceed the total appropriations recommended by the president, including both programmed spending and unprogrammed standby funds. The decision declared portions of the 2024 and 2025 General Appropriations Acts unconstitutional for exceeding this ceiling and invalidated key 2026 provisions regarding the release of unprogrammed funds.

In response, the Office of the Solicitor General (OSG) has advised the Marcos administration to defer spending on budget items flagged by the court as unconstitutional. Solicitor General Darlene Berberabe stated this deferment serves as a show of “good faith” while the OSG prepares a motion for reconsideration, which must be filed by November 4. The OSG intends to challenge the ruling on the grounds of judicial overreach and the constitutional framework regarding the separation of powers.

The ruling has significant implications for the proposed 7.2 trillion peso (US$113.5 billion) 2027 national budget, which is currently before the Senate. The decision specifically voided a 449.5 billion peso increase in unprogrammed appropriations in the 2024 budget and a 17.99 billion peso increase to the Department of Public Works and Highways’ Special Road Fund in the 2025 budget.