Marcos vetoes less than half of unprogrammed appropriations in 2026 budget

MANILA, Philippines — President Ferdinand Marcos Jr. has vetoed over P92.5 billion of unprogrammed appropriations in the 2026 national budget, less than half of the amount Congress had agreed upon and approved.

“To ensure that public funds are expended in clear service of national interests, I vetoed several items of appropriations with their purposes and corresponding Special Provisions under the UA, totaling almost P92.5 billion,” Marcos said in a speech on Monday, January 5, after signing the 2026 budget into law.

At just over P150 billion, Marcos noted that unprogrammed appropriations for 2026 was at the “bare minimum” and the “lowest since 2019.”

The 2026 budget is the first under Marcos that was signed this late. The previous three budgets, including the controversial 2025 budget which saw over P531.7 billion in unprogrammed appropriations, or a standby fund whose source has yet to be determined, were signed into law before the end of the previous fiscal year.

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Watchdogs have criticized the persistence and ballooning of this fund on account of its potential for abuse. Many flood control projects discovered to be substandard or non-existent were funded through unprogrammed appropriations.

“Let me be clear: the Unprogrammed Appropriations are not blank checks. We will not allow the Unprogrammed Appropriations to be misused or treated as a backdoor for discretionary spending,” said Marcos.

Watchdogs had earlier urged Marcos to act on over P633 billion in projects in the 2026 budget, including the P243 billion in “shadow pork” items or unprogrammed appropriations.

“Its utilization is provided with safeguards and is only available when clearly defined triggers and tests are met and will be released only after careful validation. My administration will enforce these safeguards without exception to serve the public interest and to advance our national development goals,” said Marcos.

The 2026 budget — particularly the process of Congressional scrutiny — is backdropped by criticism and outrage over what is estimated to be billions in public funds that were misspent in substandard or non-existent flood control projects.

Marcos’ trust ratings have plummeted amid the flood control controversy, which he unwittingly sparked with the launch of a crackdown on corruption in his 2025 SONA. The scandal has touched many parts of Philippine government and politics, including allies and even close friends and family of the President.

10 items vetoed

In a press briefing following the signing of the budget, Acting Executive Secretary Ralph Recto said 10 items under unprogrammed appropriations were vetoed, to include some aid programs.

Only three line items remain under UA, including support for foreign-assisted projects (P97 billion), military modernization (P50 billion), and risk management related to private-public partnership projects (P3.6 billion).

Recto explained these three line items remained under unprogrammed appropriations because they “did not make the cut” in planning for the 2026 budget but are already being implemented or are already set to be implemented.

The full list of items that were vetoed include:

1. Budgetary support to government-owned and controlled corporations
2. Fiscal support arrearages under the Comprehensive Automotive Resurgence Strategy (CARS) Program
3. Comprehensive insurance coverage for strategically important government assets and interests
4. Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) Program
5. Philippine government counterpart funding for foreign-assisted projects
6. Public health emergency benefits and allowances for healthcare and non-healthcare workers
7. Marawi siege victims’ compensation program
8. Prior-years’ local government unit (LGU) shares
9. SAGIP
10. Refund of the Service Development Fee for the Right to Develop the Nampeidai Property in Tokyo, Japan

Marcos, speaking in Malacañang, promised to make “transparent” the use of unprogrammed appropriations by “providing the necessary details on the funding source and the corresponding purpose.”

Asked if any projects would be stalled by Marcos’ veto of unprogrammed appropriations, Recto said these projects would not be funded anyway because excess revenue was not expected for 2026.

Funding for the Department of Public Works and Highways (DPWH), chief implementor for infrastructure projects, was also much lower compared to the proposed budget submitted by the executive to Congress. A bulk of this was because of the slashed funds for flood control projects.

Re-enacted, for the first time

For the first time under the Marcos administration, the government operated on an re-enacted budget in the first four days of 2026 because in the delay of the law’s signing.

The 2025 budget saw Marcos officials scrambling to take “control” of the government’s spending plan, after the 19th Congress — dominated by his allies — approved a budget that did not align with the administration’s goals.

Amid increased clamor for transparency in the budget process, both Marcos and Congress agreed to open bicameral committee deliberations on the 2026 budget to the public by livestreaming meetings for the first time.

“The year 2025 tested our nation on many fronts. We experienced climate-related disruptions, earthquakes, economic uncertainty, and the exposure of widespread corruption within our system,” said Marcos.

He added: “We are at a critical juncture in the implementation of this administration’s medium-term development plan and on the cusp of sweeping reforms in politics and in governance. The 2026 General Appropriations Act is a vital component in all of these.” – Patrick Cruz/Rappler.com