Senate tightens scrutiny of ₱7.2-trillion 2027 budget following Supreme Court ruling

ASM, Philippine Canadian Inquirer
October 22, 2026

Photo courtesy: Senate of the Philippines

MANILA, Philippines — The Senate is preparing for stricter scrutiny of the proposed ₱7.2-trillion national budget for 2027 after the Supreme Court struck down the 2024 and 2025 budget laws and key provisions of the 2026 budget over unconstitutional funding adjustments.

The ruling has placed renewed attention on how Congress handles public funds, particularly as senators examine billions of pesos in proposed appropriations and changes introduced by the House of Representatives.

Senate finance committee chair JV Ejercito said the chamber would carefully review the court’s decision to ensure that the same violations would not be repeated in next year’s spending plan.

He also maintained that the Senate had already taken a more cautious approach during the 2026 budget deliberations by avoiding increases in unprogrammed appropriations beyond the amount submitted by the executive branch.

The Supreme Court’s decision, announced Tuesday, October 20, found that Congress exceeded its constitutional authority when it increased the 2024 budget’s unprogrammed appropriations from ₱281.9 billion to ₱731.4 billion.

The ₱449.5-billion increase violated the constitutional restriction against Congress raising the President’s recommended total appropriations. The court also identified unlawful adjustments involving the 2025 Special Road Fund and certain provisions governing the release of unprogrammed funds in 2026.

Unprogrammed appropriations are standby funds that may be released only when specified funding conditions are met. The court clarified that these allocations are not automatically unconstitutional but must comply with established fiscal safeguards.

With those restrictions now emphasized, senators are looking more closely at changes made to the proposed 2027 budget.

Sen. Panfilo Lacson said the ruling came at a critical time, as the Senate reviews the House-approved spending measure. He indicated that the chamber would seek to restore hundreds of billions of pesos in allocations that had been reduced or redirected, including funding for foreign-assisted projects and flood control initiatives.

Senate President Pro Tempore Vicente Sotto III also pledged greater transparency, including the continued livestreaming of budget committee deliberations.

Meanwhile, questions over specific allocations have emerged during Senate hearings.

On Wednesday, October 21, the People’s Budget Coalition raised concerns about approximately ₱190 billion worth of projects allegedly added by the House to the Department of Agriculture’s proposed budget.

Coalition co-convenor Kenneth Abante identified 7,054 project insertions, including farm-to-market roads whose listed coordinates reportedly pointed to locations at sea rather than their intended sites.

One example involved a ₱23-million road project intended for Nueva Ecija, with coordinates placing it near Philippine Rise, formerly known as Benham Rise.

Abante called for a detailed examination of the projects and the publication of supporting documents to determine whether the allocations were properly justified. The coalition emphasized that the discrepancies were not, by themselves, conclusive evidence of corruption.

Agriculture Secretary Francisco Tiu Laurel Jr., meanwhile, appealed for support for his department’s proposed ₱198.4-billion budget.

He warned that farmers and fisherfolk face growing challenges from extreme weather, higher production costs and international disruptions. In a worst-case scenario, he said as many as 4.6 million Filipinos working in agriculture could be affected.

Budget concerns also extended to the Department of Social Welfare and Development (DSWD), which sought the restoration of funding for its Assistance to Individuals in Crisis Situations (AICS) program.

The proposed allocation for AICS fell to ₱33.3 billion in the 2027 National Expenditure Program, compared with ₱63 billion in 2026.

Social Welfare Secretary Rex Gatchalian defended the program’s role in delivering immediate assistance to vulnerable groups, including transport workers affected by rising costs.

As the Senate continues its hearings, the Department of Budget and Management is coordinating with the Office of the Solicitor General and other executive offices to assess the legal and financial implications of the Supreme Court’s decision.

Malacañang has also directed the Solicitor General to seek reconsideration of parts of the ruling, arguing that the restrictions could make unprogrammed appropriations difficult to implement.

For the Senate, the immediate task is to examine the proposed allocations, address questionable adjustments and ensure that the final 2027 budget complies with constitutional requirements.