PRESIDENT Ferdinand Marcos Jr. on Monday enacted the General Appropriations Act (GAA) for 2026 worth P6.793 trillion but vetoed nearly P92.5 billion in unprogrammed allocations to reinforce fiscal discipline, transparency and accountability.
Marcos said the unprogrammed allocations were reduced to the “bare minimum,” stressing that standby funds must only be tapped when “absolutely necessary and strictly in accordance with conditions set in this act.”
“I acknowledge the support of the Congress in limiting the coverage of the unprogrammed appropriations (UA), heeding the public’s call for transparency and accountability. However, I push further and reduce the same to the bare minimum, at a level that is the lowest since FY 2019,” the president said.
Data from the Department of Budget and Management showed UA allocations have been steadily tightened, falling to P150.9 billion in 2026 from P363.4 billion in 2025, and far below the P731.4 billion in 2024 and P807.2 billion in 2023.
Marcos emphasized that UAs “are not blank checks” and warned against treating them as a “backdoor for discretionary spending” that could widen the fiscal deficit beyond projections.
“We will not allow the UA to be misused or treated as a backdoor for discretionary spending that will exceed our fiscal program and widen our deficit from our original projection,” he said.
This year’s national budget, the chief executive said, is expected to “sustain the momentum in education reform, in health protection, in food security, in social security, and in job creation.” As mandated by the Constitution, the education sector was given more than P1.34 trillion. This would fund additional teaching and non-teaching positions in public schools, teacher promotions and reclassification, and classroom construction nationwide.
Meanwhile, the health sector was given P448.125 billion to support the promotion of Universal Health Care (UHC), including the P1 billion budget for the Zero Balance Billing (ZBB) Program in local government hospitals, covering in-patient services in basic accommodation.
The budget also provides funding for disease surveillance, rapid response mechanisms, and sustainable health financing.
The Philippine Health Insurance Corp. (PhilHealth), the government’s social health insurance agency, received nearly P130 billion, including the P60 billion ordered restored in accordance with the Supreme Court’s decision.
“These funds shall support preventive health care and the improvement of PhilHealth benefit packages, lowering the out-of-pocket expenses of Filipino families,” the president said.
Meanwhile, the agricultural sector was allotted over P297 billion for the modernization of supply systems and support for farmers and fishermen, including the establishment of farm-to-market roads that will connect farming communities to economic hubs, lessen transportation costs, and minimize post-harvest losses.
The government will also transform the social protection system by providing it with a budget of more than P270 billion, which will be used to enhance the quality of life for Filipinos, safeguard the welfare of all sectors, and foster human capital development.
Through these responsive and rationalized flagship programs, the president said the budget aims to direct the country toward achieving a single-digit poverty rate by 2028.
To uphold the welfare of the country’s defenders and peacemakers, the GAA also supports the implementation of the updated base pay schedule and increased subsistence allowance for military and uniformed personnel.
Marcos vowed that public funds would be spent in ways that directly benefit them, with every program or project to undergo rigorous scrutiny to guarantee tangible results for citizens, particularly those from the most vulnerable sectors. “In the national budget of 2026, the direction of your government is clear: we will be more prudent, more careful, and more responsible in spending public funds. Each program and project will go through a thorough review to ensure that it has a clear benefit to the people — especially in the sector that needs it the most,” he said in Filipino.
“Monitoring, questioning, reporting, and participation are essential parts of a functioning democracy. We are with you in the goal of ensuring that the country’s budget would indeed benefit the country,” he added.
Vetoed
Of the 10 unprogrammed items, Marcos vetoed the following: Budgetary support to government-owned and -controlled corporations (P6.895 billion), Philippine government counterpart funding for foreign-assisted projects (P35.769 billion), Fiscal support arrearages under the Comprehensive Automotive Resurgence Strategy (CARS) Program (P4.32 billion), Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) Program (P250,000), comprehensive insurance coverage for strategically important government assets and interests (P2 billion), and Payment of Personnel Services Requirements (P43.245 billion).
This leaves only three approved items under the UA — support for foreign-assisted projects (P97 billion), military modernization (P50 billion), and risk management related to private-public partnership projects (P3.6 billion).
“The veto of these items is a measured exercise of executive authority to rebuild public trust in the budget process, by ensuring that public funds are expended in clear service of national interests. I direct all concerned departments and agencies of the national government to exercise prudent fiscal management to ensure uninterrupted quality public service,” Marcos said.
‘Squeaky clean’
Senate President Vicente Sotto III said the president vetoed P92.5 billion in unprogrammed allocations because he wants the 2026 national budget “squeaky clean.”
“I know the 2026 budget is by far the cleanest ever, but it seems the president wants it squeaky clean,” Sotto said when sought for his reaction on Marcos’ move.
“He even highlighted the Senate provision that prevents political patronage by politicians,” Sotto said in a text message.
Marcos said he would “not allow the UA to be used and be mistreated as a backdoor for discretionary spending.”
“It will only be released after careful validation. We will make releases charged from the UA transparent,” the president added.
Senate President Pro Tempore Panfilo Lacson said he supports Marcos’ decision.
He said P150.9 billion is the exact amount that survived the veto, of which P97.3 billion is for the government counterpart for foreign-assisted project (FAP), P3.6 billion for program risk management, and P50 billion for Armed Forces of the Philippines modernization.
Sen. Erwin Tulfo lauded the president’s move. “This is what we need, a budget that will restore the public’s trust to the government.”
“President Marcos’ decision to veto several items under the unprogrammed funds is just a step toward full and real accountability,” Tulfo said.
“We are grateful that the President heeded our call to limit the use of unprogrammed appropriations and vetoed P92.5 billion worth of projects lodged under this budgetary mechanism,” he said.
Sen. Bam Aquino said the P6.793 trillion 2026 national budget will support vital education programs, such as the construction of classrooms.
He said the P1.34-trillion education budget — the largest in the country’s history — allocated P68 billion for the construction of new classrooms and P25.6 billion for the expansion of the School-Based Feeding Program.
The budget also earmarks P67 billion for the implementation of Republic Act 10931, or the Free College Law, which Aquino authored.
“The winners of this 2026 national budget are the Filipino youth,” Aquino said in a statement in Filipino.
Strict oversight
Speaker Faustino Dy III vowed strict oversight by the House of Representatives to ensure lawful and efficient use of the 2026 national budget.
He made the vow after the president signed the national budget into law.
“The signing of the budget is not the end of our work. This is just the start. It is the start of oversight. Congress will make sure every peso is spent exactly as approved,” Dy said in Filipino and English.
“This is the people’s budget. It is a budget that is open, accountable, and focused on improving lives — creating jobs, strengthening education, expanding health care, and ensuring food security,” he said.
“This reflects the president’s clear direction that public funds must be used responsibly and felt by the people,” the House leader said.
The crafting of the 2026 national budget was marked with reforms in the budget process that included the livestreaming of the deliberations of the bicameral conference committee that finalized the budget measure.
The House also convened a Budget Amendments Review Subcommittee, the deliberations of which were also livestreamed, instead of a small committee.
“These reforms opened the budget process to public scrutiny. Every step and every peso can now be explained and defended before the Filipino people,” Dy said.
“There will be zero tolerance for corruption,” he said on Monday.
Dy said, “The historic amount allocated for education is an investment in the Filipino youth — an investment in the future of the Filipino nation.”
The DepEd vowed to make the most of the 2026 education budget.
The DepEd said it “is set to intensify efforts to address the long-standing challenge of the […] classroom backlog by obtaining” P85.3 billion under the 2026 budget.
It said P65 billion “will be dedicated to the construction of 24,964 new classrooms,” and P7.7 billion “will be allotted for the repair and rehabilitation of existing school buildings.”
The department said that for 2026, it secured P10.6 billion for the DepEd Computerization Program.
It also said, among others, that it was granted P4.6 billion for the training of teachers.
“We are looking at a very promising 2026 for the education sector,” Education Secretary Sonny Angara said. WITH REINA C. TOLENTINO and PNA
Source: Marcos signs P6.79T budget but vetoes P92.5B in standby funds
