Philippine Supreme Court voids 2024 and 2025 national budget laws

The Supreme Court of the Philippines has struck down the national budget laws for 2024 and 2025, ruling that legislative additions unlawfully surpassed the expenditure levels proposed by the executive branch, according to Rappler.

In a full-court decision authored by Senior Associate Justice Marvic Leonen, the tribunal declared Republic Act 11975, or the 2024 General Appropriations Act, unconstitutional after lawmakers added 449.5 billion pesos in unprogrammed appropriations. The court found that this addition pushed the overall budget beyond the president's recommended cap. The ruling addressed legal challenges brought by former lawmaker Edcel Lagman and former senator Koko Pimentel.

The high court similarly invalidated Republic Act 12116, the 2025 budget measure, following a petition filed by the group Filipinos for Peace, Justice and Progress Movement and other advocates. Justices determined that Congress improperly raised the Special Road Fund under the Department of Public Works and Highways by 17.99 billion pesos, which also exceeded the president's proposed spending totals. Lawmakers further violated the Administrative Code by raising amounts in special accounts within the general fund beyond executive proposals.

In addition, the ruling struck down two special provisions in the 2026 budget law. Evaluating petitions brought by Representative Edgar Erice and Representative Leila de Lima, the justices clarified that unprogrammed standby allocations are not inherently unlawful. However, the court stressed that such measures must feature strict guidelines and fiscal discipline to prevent granting the executive branch unchecked spending power.

To remain constitutional in the future, the court established that unprogrammed appropriations cannot include lump sums, must feature explicit spending priorities when multiple purposes exist, must align with national fiscal plans, and must clearly separate rules for non-tax revenue from programmed spending.

Addressing money already disbursed, the magistrates applied the doctrine of operative fact, which temporarily acknowledges the practical effects of a law before it was voided. This protection applies strictly to irreversible initiatives whose recipients operated in good faith. The court underscored that this principle provides no legal immunity to officials who designed, sponsored, or executed the invalid measures, leaving them open to possible civil, administrative, or criminal accountability unless cleared by competent tribunals.

Key legislators responded quickly to the judgment as work continues on the proposed 2027 fiscal plan. Senator Panfilo Lacson called the decision timely while the upper chamber reviews the budget legislation sent by the House of Representatives. Senate finance committee chairman JV Ejercito announced that lawmakers would thoroughly examine the ruling to guide adjustments for upcoming national appropriations. Senate President Pro Tempore Vicente Sotto III also pledged that deliberations on the 2027 budget would remain transparent, incorporating public live broadcasts and adhering directly to the boundaries established by the court.