The Supreme Court (SC) declared the P5-billion Local Government Support Fund (LGSF) in the 2024 national budget unconstitutional, ruling that it was among the insertions that inflated unprogrammed appropriations.
Associate Justice Alfredo Benjamin Caguioa said the fund gave the President excessive discretion over how the money would be used.
The SC also struck down a P449.5-billion increase in unprogrammed appropriations, citing its departure from the President’s proposed budget.
However, the court said projects already implemented under the 2024 budget would be presumed to have been carried out in good faith.
The LGSF remains part of the proposed 2027 national budget, with an allocation of P58.53 billion for local government projects and services.
Source: PhilNews24 | October 26, 2026
