DBM assures Senate 2027 budget complies with Supreme Court rulings

During a Senate briefing, Department of Budget and Management Secretary Kim De Leon confirmed that the 2027 national budget has been adjusted to eliminate provisions the Supreme Court found unconstitutional in the 2024 and 2025 budgets, specifically the SAGIP component within unprogrammed appropriations. He noted the new budget adheres to the Court’s four guardrails, including a ban on lump-sum allocations, and that the unprogrammed appropriations amount is the lowest since 2019.

Senators questioned if Congress could still surpass the President’s proposals for both programmed and unprogrammed spending, and they requested assurance that payments for foreign-assisted projects would not default. De Leon assured that foreign-assisted projects are financed directly by development funders, preventing bounced checks. Senator Francis Pangilinan cited Justice Marvic Leonen’s comment that the Court’s decision applies only to future budgets, invoking the doctrine of post-operative fact for 2024-2025. The DBM also said sections 1A and 1B of the 2026 budget will withhold funds unless revenue targets are met.