MANILA – President Ferdinand Marcos Jr.’s veto of P92.5 billion in unprogrammed appropriations from the P6.793-trillion 2026 General Appropriations Act (GAA)—signed January 5, 2026—has drawn sharp criticism for being “selective” and insufficient, with analysts and lawmakers arguing it spares major “graft-prone” programs while cutting less controversial items.
Budget reform advocate Adolfo Jose Montesa called the veto inconsistent: The administration “hasn’t really done the big things that needed to be done” to tackle corruption. He noted vetoed items “were those not necessarily prone to corruption,” questioning why they weren’t placed in the programmed budget initially.
Retained “Backdoor” Programs Raise Alarm
Critics highlight retained social assistance programs—often labeled “soft pork”—that more than doubled from the National Expenditure Program despite scrutiny:
- DSWD Assistance to Individuals in Crisis Situations (AICS).
- DOLE Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (Tupad).
- DOH Medical Assistance to Indigents and Financially Incapacitated Patients (Maifip).
Montesa flagged enforcement gaps in a new GAA provision barring politicians from aid distribution: “There are no clear mechanisms… If someone violates it, where do you report it? What is the penalty?”
Vetoed Items (P92.5B Total)
| Item | Amount (P Billion) |
|---|---|
| Budgetary Support to GOCCs | 6.895 |
| Prior Years’ LGU Shares | 0.014623 |
| Personnel Services Requirements | 43.245 |
| CARS Program (Automotive Support) | 4.32 |
| RACE Program (Automotive Competitiveness) | 0.25 |
| Insurance of Government Assets | 2 |
| Counterpart for Certain FAPs | 35.77 |
Retained Unprogrammed Items (P150.9B Total)
| Item | Amount (P Billion) |
|---|---|
| Support to Foreign-Assisted Projects | 97.305 |
| Revised AFP Modernization | 50 |
| Risk Management Program | 3.6 |
The veto reduced unprogrammed funds to their lowest since 2019, but critics like former Rep. Leila de Lima called remaining allocations “shadow pork,” illogical amid admitted near-zero excess revenues.
Sen. Sherwin Gatchalian raised concerns over vetoed automotive incentives delaying tax benefits for investors like Mitsubishi and Toyota, and foreign project counterparts risking loan delays.
The tone is skeptical: Vetoes as superficial amid deeper systemic risks post-flood scandal.