SC JUSTICE: UNPROGRAMMED APPROPRIATIONS IN ANY FORM UNCONSTITUTIONAL

Supreme Court Associate Justice Ramon Paul Hernando stated that unprogrammed appropriations in the General Appropriations Act (GAA) are unconstitutional, as they create an unregulated space prone to misuse and corruption. Hernando emphasized that all expenditures must have definite sources of financing, and unprogrammed funds, often included for “convenience,” violate Article VII, Section 22 and Article VI, Section 25(2) of the Constitution. In a Dec. 3 ruling, the Supreme Court ordered the return of P60 billion in PhilHealth funds previously remitted to the national treasury and barred the transfer of the remaining P29.9 billion. Hernando dissented from the court’s implied acceptance of unprogrammed funds as a budgetary device, arguing such allocations should instead be legislated through special appropriations laws. The Nagkaisa Labor Coalition also called for the resignation of Executive Secretary Ralph Recto, criticizing his defense of the illegal fund diversion and downplaying of the high court’s ruling.