
Two days before the 2025 national budget expired, President Ferdinand Marcos Jr. signed the 2026 national budget, vetoing P92.5 billion worth of congress-approved items under the Unprogrammed Appropriations (UAs)—the lowest since 2019.
Signed at Malacañang Palace on Dec. 29, 2025, Republic Act No. 12314, or the 2026 General Appropriations Act (GAA), totals P6.792 trillion with Marcos vowing stricter transparency in fund releases, tighter public spending, and fiscal discipline following corruption controversies in 2025.
“The year 2025 tested our nation on many fronts… These challenges are painful, but they also made one thing clear: real change could no longer wait,” Marcos said. “As we enter this year, let us take this opportunity to move forward with difficult but necessary reforms in governance, rebuild trust, and deliver an honest and effective government to the Filipino people.”
Several lawmakers welcomed the passage of the budget, citing its intent to curb political interference and abusive practices.
“I know the 2026 budget is by far the cleanest ever, but it seems the President wants it squeaky clean. He even highlighted the Senate provision that prevents political patronage by politicians,” Senate President Vicente “Tito” Sotto III said in a Viber message to reporters, according to GMA News.
Senator Erwin Tulfo, vice chair of Senate committee on finance, also described the 2026 budget as the most transparent in recent history.
On the other hand, some lawmakers warned that UAs remain susceptible to abuse, describing them as potential “standby” funds prone to corruption.
UAs refer to budget items that may only be released only if the government generates excess revenues or secures additional funding through loans or special laws.
“Vetoing a considerably significant amount—or any amount—in UAs is not the point. It is still ‘shadow pork,’” House Deputy Minority Leader and ML party-list Representative Leila de Lima said, citing a concurring and dissenting opinion in the PhilHealth case that questioned the constitutionality of UAs.
De Lima further argued that UAs are illogical, stressing that essential projects should already be included in the programmed budget, while any spending from excess revenues should require new congressional approval through special appropriations.
“The President’s much-touted veto of P92.5 billion in UAs is nothing but pampalubag-loob—a token gesture meant to distract from the billions in pork barrel funds that remain untouched in the signed budget,” Makabayan legislators said in a statement.
Under the 2026 GAA, the education sector received the highest allocation at P1.345 trillion, while the health sector obtained its largest budget to date at P448.125 billion.
Agriculture was allocated P297.102 billion for supply modernization, farmer and fisher support, and farm-to-market roads, while social services received P270.189 billion to address systemic vulnerabilities and promote inclusive growth, as Marcos aims to bring poverty rate down to a single-digit rate by 2028.
The budget also boosts funding for local government units, reinforces the Local Government Support Fund, and earmarks P15.33 billion for disaster rehabilitation and reconstruction under the National Disaster Risk Reduction and Management Fund.
“To ensure that public funds are expended in clear service of national interests, I vetoed several items of appropriations with their purposes and corresponding Special Provisions under the UA, totaling almost PhP92.5 billion,” Marcos said.
The 2026 GAA is also Marcos’ latest budget signing to date, marking the first time his administration enacted a national budget after the previous fiscal year had already ended.