EXPLAINER: What happens to funds spent under budget laws the SC declared void?

The Supreme Court has declared as unconstitutional the Philippines' national budget laws in 2024 and 2025 worth P5.768 trillion and P6.352 trillion respectively.

It also struck down the provisions allowing unprogrammed appropriations in the 2026 budget.

What happens now to the funds disbursed according to these laws and provisions?

In the case of allocations used in projects implemented in good faith, the funds need not be returned, the High Tribunal's spokesperson said on Wednesday.

At a press conference, Atty. Camille Ting said that the doctrine of operative fact applies.

“Under this doctrine, good faith projects already implemented and no longer reversible remain valid. Applying this doctrine, irreversible programs in the 2024 and 2025 GAAs whose beneficiaries acted in good faith are valid,” she said.

She later added, “there will be no funds returned in that case.”

Ting said Congress violated the Constitution when it increased the total appropriations submitted by President Ferdinand Marcos Jr.

When asked about Marcos’ accountability for signing the GAA, Ting said, "Accountability was not an issue in this case. The court did say that the author, implementor, or perpetrator of the unprogrammed appropriations that violate the constitution, they can be subject to civil criminal, or administrative liability."

"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," Ting said.

However, she said the SC ruled that the author, implementor, or perpetrator of the unprogrammed appropriations that violate the Constitution, they can be subject to civil, criminal, or administrative liability, provided that they did not act in good faith.

When asked if the president may be considered an “implementor,” Ting said this will be on the discretion of the possible complainants.

“We do not know that. I mean it would depend on the case that’s filed and the evidence presented,” Ting said.

Motion for reconsideration

Ting said the case is also not yet final and may be appealed.

“It will always be subject of a motion for reconsideration. They are given 15 days to file their motion for consideration from notice of the decision,” she said.

Earlier, Malacañang said that it will ask the SC to reconsider its ruling through the Office of the Solicitor General.

Meanwhile, Ting stressed that unprogrammed appropriations are not unconstitutional, per se.

“They’re allowed as long as it’s within the guidelines,” she said. —NB, GMA News