CenPEG Statement on the President’s Signing of the 2026 National Budget

The Center for People Empowerment in Governance (CenPEG) expresses grave concern over the President’s decision to sign into law the 2026 General Appropriations Act (GAA) based on the ratified Bicameral Conference Committee (Bicam) version without removing or substantially correcting the highly questionable lump-sum and discretionary appropriations embedded in the final budget.

Despite widespread public criticism and repeated warnings from economists, civil society groups, and budget watchdogs, the enacted 2026 budget retains large P150.9B Unprogrammed Appropriations, almost 138B ayuda and patronage-type funds (AICS, MAIFIP and TUPAD), as well as swollen allocations for Confidential and Intelligence Funds (P11B), LGU pork (P73B), NTF-ELCAC (P8B), and massive infrastructure funds or ‘allocables’ that continue to raise serious red flags on transparency, accountability, and constitutionality.

Think tank CenPEG stresses that the Bicameral Conference Committee is not authorized to introduce new items or substantially expand appropriations beyond reconciling legitimate differences between the House and Senate versions of the budget. The retention of lump-sum funds and vaguely defined appropriations directly undermines the principles of line-item budgeting, separation of powers, and legislative accountability. “

“By signing the budget in its current form, the President effectively legitimized a Bicam process that has once again been used to insert and inflate lump-sum and patronage-oriented funds,” said Prof. Roland Simbulan, Chairperson of CenPEG. “These appropriations weaken democratic oversight, encourage discretionary spending, and open wide the door to political abuse and corruption.”

CenPEG is particularly alarmed by the continued presence of Unprogrammed Appropriations, which allow massive spending without clear revenue sources or congressional scrutiny, and by the dramatic expansion of ayuda and patronage funds, which risk being used as political tools rather than as genuine social protection mechanisms. Likewise, the persistence of CIF, NTF-ELCAC funding and loosely defined infrastructure allocations raises concerns over militarization, politicization of development, and misuse of public resources.

The President had the constitutional authority—and responsibility—to exercise the power of the veto to remove these problematic provisions.

Failing to do so signals acquiescence to a budget system that prioritizes political convenience over people-centered development.

CenPEG calls on Congress, the Commission on Audit, and the public to remain vigilant in scrutinizing the implementation of the 2026 budget. We further urge the administration to commit to genuine budget reform, including the abolition of lump-sum appropriations, strict adherence to the National Expenditure Program (NEP), and the restoration of transparency and accountability in the budget process.

Ultimately, a national budget must serve the people—not political patronage, discretionary power, or entrenched interests.

REFERENCE: Prof. Roland Simbulan, Chairperson, 09272493295.  For more information, please contact: Email: cenpeg.info@gmail.com | Phone: 09171141405 | Website: www.cenpeg.org