Senate President Sherwin Gatchalian announced plans to eliminate lump-sum funds from the proposed P7.2-trillion national budget for 2027. This decision follows recent Supreme Court rulings regarding budget appropriations and aims to ensure compliance with legal standards.
Aligning the budget with legal standards
The bottom line is that the Supreme Court said appropriations cannot exceed the budget proposed by the president.
Sherwin Gatchalian, Senate President
Gatchalian made these statements during a DZBB radio interview, emphasizing that the Senate would strictly adhere to the Supreme Court's directives. The court had previously ruled that the 2024 and 2025 national budgets were unconstitutional, primarily due to unauthorized congressional increases in appropriations.
While lump-sum funds will be cut, Gatchalian clarified that unprogrammed appropriations, which serve as standby funds, would still be included in the budget. However, these funds will only be released when specific conditions are met, in accordance with the Supreme Court's guidelines.
He noted that unprogrammed appropriations typically represent about 2 percent to 5 percent of the national budget. This approach aligns with the Senate's broader objective of ensuring fiscal accountability and transparency.
During a Senate Committee on Finance hearing on October 22, Budget Secretary Kim Robert De Leon confirmed that the problematic provisions previously struck down by the court would not be part of the proposed 2027 budget.