OSG advises DBM to halt affected 2026 budget projects after SC ruling

Solicitor General Darlene Marie Berberabe said the Office of the Solicitor General (OSG) would advise the Department of Budget and Management (DBM) to temporarily halt certain projects under the 2026 General Appropriations Act (GAA), as the Supreme Court questioned two provisions governing the release of unprogrammed appropriations under this year’s budget.

The Supreme Court also declared unconstitutional Congress’ ₱449.5-billion increase in unprogrammed appropriations under the 2024 national budget and the ₱17.99-billion increase in the Department of Public Works and Highways’ (DPWH) Special Road Fund for 2025.

For the 2026 GAA, the decision, penned by Senior Associate Justice Marvic Leonen, nullified Special Provisions 1(a) and 1(b) under Chapter XLIII, which authorize the use of unprogrammed funds based on excess collections from individual non-tax revenue sources or new revenue streams.

“Sa amin po, ang ipapayo po namin sa DBM at sa ehekutibo ay pumorma na tayo na parang huwag muna tutal aasahan na madesisyunan ito kaagad. Okay, so siguradong bibigyan din ito ng prayoridad ng ating Supreme Court sapagkat ayaw din naman ng Supreme Court dapat na maapektuhan iyong execution ng budget sa ating remaining 2026,” Berberabe said during a Palace press briefing on Thursday.

The Supreme Court further reaffirmed its previous doctrine that “unprogrammed funds can only be triggered when aggregate revenue collections exceed the total revenue targets assumed in the Budget of Expenditures and Sources of Financing.”

However, Berberabe said the temporary halt would apply only to projects that have not yet started. Projects already underway or being implemented in phases should continue, she added.

“Iyong mga klaro na sakop doon sa (GAA 2026) decision, huwag muna. Bilang good faith at hindi natin gustong hindi sumunod. So kung alin lang ang sakop. Tutulungan po namin ang executive para makapag-determine, para may legal advice din naman sila,” she said.

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