The Philippines budget for 2027 could require a change in how Congress allocates unprogrammed funds after a Supreme Court ruling, Senator Francis Escudero said on October 25, 2026. The decision is not yet final, and its full implications remain uncertain.

Key Takeaways

  • Escudero said Congress can no longer use unprogrammed funds to increase appropriations beyond the executive branch’s proposed budget.
  • The House has passed its version of the 2027 spending plan, which the Senate is reviewing.
  • Escudero expects the Office of the Solicitor General to seek reconsideration, but the court could retain or change its decision.

Philippines budget practice under scrutiny

Escudero said the Supreme Court found unconstitutional the practice of allowing unprogrammed appropriations to exceed the budget proposed by the executive branch. He cited a constitutional provision prohibiting Congress from increasing appropriations recommended by the president for government operations.

Previous Congresses had added unprogrammed funds on top of the president’s proposed programmed budget, he said. Under his reading of the ruling, those funds must be included in the calculation and cannot push appropriations beyond the proposed budget.

The court also struck down certain conditions governing the release of unprogrammed appropriations, Escudero said.

Uncertainty for existing and future spending

Escudero said the 2025 national budget remained in effect through the end of 2026. In his view, unimplemented portions covered by the prohibition should no longer be implemented once the decision becomes final.

He said completed projects would be difficult to reverse because the court did not issue a temporary restraining order. He also raised the question of what would happen to money already spent.

If the ruling is not final when Congress approves the 2027 spending plan, lawmakers will have to decide whether to maintain their previous approach or adjust in anticipation of the court’s final decision, Escudero said.

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