Senate approves 2026 budget on 2nd reading, unprogrammed appropriations remain

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The Senate aims to pass the proposed P6.7-trillion spending plan by December 9

MANILA, Philippines – The Senate on Thursday, December 4, approved the proposed P6.7-trillion budget on second reading, keeping around P175 billion in unprogrammed appropriations.

Senate President Pro Tempore Panfilo “Ping” Lacson earlier proposed adding a provision that prevents elected officials’ involvement in social aid or ayuda distribution.

The People’s Budget Coalition previously warned that funding for “vague” ayuda programs have increased over the years, and warned that funds from these programs risk falling into the hands of those connected to politicians instead of going to those who need it most.

While the Senate version of the proposed spending plan cut funding for these programs by more than half, the Roundtable for Inclusive Development noted that unprogrammed appropriations remained high at around P175 billion.

Meanwhile, the Pantawid sa Pamilyang Pilipino Program (4Ps) was restored to its national expenditure program level at P11.17 billion. Senate finance committee chairman Sherwin Gatchalian explained that the program is facing a P19.4-billion deficiency from October to December of this year.

“This gap occurred when last year’s P50 billion programmed budget for 4Ps was moved to unprogrammed funds and was then later vetoed. These [obligations] are due to be paid in the first quarter of 2026,” he explained.

The Senate also increased funding for zero-balance billing to P62.6 billion from just P53.3 billion under the House’s proposed spending plan.

Senate Minority Leader Alan Peter Cayetano and Senator Joel Villanueva voted against the measure. Cayetano flagged the remaining unprogrammed appropriations and said the budget could still do more to support rural development.

“It doesn’t really promote rural development. The unprogrammed funds are still there…. It’s a good budget, don’t get me wrong, Mr. President…. I think we can come up with something that really changes the game for the Filipino people,” Cayetano said.

Public works funding

Gatchalian announced that P52.13 billion to the Department of Public Works and Highways (DPWH) budget was restored after the reversal of a 5% reduction of Construction Materials Price Data (CMPD).

The 2026 budget sponsor explained that the CMPD reduction may impact labor and equipment costs, which may cause workers to not receive proper wages.

“Given the absence of a detailed breakdown separating materials from other components during budget preparation, the most practical and responsible remedy is to restore the P52.13-billion reduction,” he said.

However, Gatchalian added that the CMPD adjustments will be applied once the DPWH provides the necessary cost breakdown and other details for implementation.

To realign funding to cover the CMPD restoration, funding for foreign assisted projects were slashed by around P53 billion.

Gatchalian earlier said the Senate aims to pass the spending plan on third and final reading by Tuesday, December 9, with the bicameral conference committee tentatively set for Thursday, December 11.

He hopes that President Ferdinand Marcos Jr. will sign the budget into law by December 29. – Rappler.com