The Philippines budget proposal for 2027 will have its lump-sum funds removed by the Senate, Senate President Sherwin Gatchalian said, as lawmakers seek to align the 7.2 trillion peso spending plan with Supreme Court restrictions.

Philippines budget and the court ruling

In a radio interview on October 25, 2026, Gatchalian said the Senate would ensure the proposed budget contained no lump-sum funds. He said the Supreme Court had ruled that appropriations could not exceed the budget proposed by the president.

The court declared the 2024 and 2025 national budget laws unconstitutional over congressional increases in appropriations. It also invalidated provisions governing unprogrammed appropriations in the 2026 budget.

Conditional standby funds to remain

Gatchalian said unprogrammed appropriations would remain in the 2027 proposal, subject to the court’s requirements. The court clarified that these standby funds are not inherently unconstitutional and may be released only when specified funding conditions are met.

He estimated that unprogrammed appropriations accounted for about 2% to 5% of the national budget. At a Senate finance committee hearing on October 22, Budget Secretary Kim Robert De Leon said the provisions struck down by the court were no longer included in the proposed 2027 budget.

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