MANILA – President Ferdinand Marcos Jr. signed the P6.793-trillion General Appropriations Act (GAA) for 2026 into law on January 5, 2026, but vetoed nearly P92.5 billion (7 out of 10 items) in unprogrammed appropriations—trimming the total to P150.9 billion, the lowest since 2019. Marcos emphasized the cuts prevent misuse of funds as “blank checks” or backdoor discretionary spending, responding to public concerns over governance and the 2025 flood control scandal.
In his signing speech, Marcos stated: “We will not allow unprogrammed appropriations to be misused… These are not blank checks.” He reduced the standby funds to the “absolute bare minimum” while retaining three essential items.
Retained Unprogrammed Items (P150.9B Total)
| Item | Amount (P Billion) | Purpose |
|---|---|---|
| Support to Foreign-Assisted Projects | 97.305 | Counterpart funding for ongoing FAPs |
| Revised AFP Modernization | 50 | Defense upgrades |
| Risk Management Program | 3.6 | PPP-related safeguards |
Vetoed Items (P92.5B Total, 7 Items)
Marcos vetoed allocations seen as discretionary or duplicative, including:
- Budgetary support to GOCCs.
- Certain industry incentives (e.g., CARS/RACE programs).
- Insurance for government assets.
- Personnel services requirements.
- Other prior-year obligations.
The vetoes—less than half the original P243.4B unprogrammed—followed calls from watchdogs like Social Watch Philippines for deeper cuts (up to P319B questionable items).
This marks the first 2026 budget signed post-New Year (with brief 2025 reenactment until Jan 4), prioritizing education (record P1.345T), health (P448B), and agriculture while enforcing fiscal discipline.
A step toward transparency—public funds for clear national priorities.