The Supreme Court has declared the national budget laws for 2024 and 2025 unconstitutional, totaling P5.768 trillion and P6.352 trillion, respectively. This landmark ruling could reshape government financial practices.
The decision also invalidates provisions for unprogrammed appropriations in the 2026 budget, raising concerns over the long-term impacts on ongoing projects.
What Happens to Disbursed Funds?
Liability is not an issue in this case. So what the Supreme Court just did was to determine whether the increase in programmed or unprogrammed funds were constitutional or not.
Atty. Camille Ting, SC Spokesperson
According to SC spokesperson Atty. Camille Ting, funds spent on projects implemented in good faith will not need to be returned. This principle relies on the doctrine of operative fact.
Ting noted that Congress violated the Constitution by increasing total appropriations submitted by President Ferdinand Marcos Jr. However, she emphasized that accountability for these actions remains unresolved.
The possibility of civil, criminal, or administrative liability exists for those involved in the unconstitutional appropriations, but this depends on their adherence to good faith.
Next Steps: Motion for Reconsideration
The ruling is not final, as the government can file a motion for reconsideration within 15 days of receiving the decision. Malacañang has indicated that it will pursue this option through the Office of the Solicitor General.
While unprogrammed appropriations are not inherently unconstitutional, they must comply with established guidelines.