The logo of the Supreme Court at the Supreme Court Building in Manila. Philstar.com / Ian Laqui
MANILA, Philippines — The Supreme Court (SC) declared that the Local Government Support Fund (LGSF) allocated in the 2024 national budget was unconstitutional for being among the insertions that “bloated” the unprogrammed funds.
The LGSF – with an allocation of P5 billion – was among the 43 items comprised of “programs, activities, and projects/purposes” worth a total of over P303.1 billion added by the bicameral conference committee in the deliberations for the 2024 national budget, according to SC records.
The 43 new line items were included in the P449.5-billion increase in unprogrammed appropriations (UA) in the 2024 budget, which the SC struck down as unconstitutional for going overboard with what the National Expenditure Program or the “President’s budget” recommended.
The high court also warned there should be no lump sums in UA provisions in the national budget.
SC Associate Justice Alfredo Benjamin Caguioa agreed with the decision written by Senior Associate Justice Marvic Leonen, and even singled out the LGSF in the 2024 General Appropriations Act (GAA) for being indeed unconstitutional.
“The LGSF, as provided in the 2024 GAA, is, in substance, a Presidential Pork Barrel,” Caguioa wrote in his 51-page separate concurring opinion.
“The 2024 GAA does not contain a special provision detailing the policy underlying the LGSF or the establishing meaningful limitations on how the P5 billion fund appropriated for LGSF may be utilized by the President,” he added.
Caguioa also likened it to the Priority Development Assistance Fund that the high court also invalidated, “except that… it is the President who is vested with unfettered discretion to determine how the lump-sum funds are to be utilized for whatever form of ‘support’ to local government units the Executive may deem proper.”
However, the majority decision noted the doctrine of operative fact would apply, wherein projects under the 2024 GAA were presumed to have been implemented in good faith.
Leonen and Caguioa are both in the running to replace outgoing Chief Justice Alexander Gesmundo next month.
Malacañang has previously defended the LGSF, which has an allocation of P58.53 billion in the proposed 2027 national budget, said to be the highest in history.
Executive Secretary Ralph Recto previously said the LGSF would fund programs such as free 10-kilo rice every two months to around eight million Filipino families, farm-to-market roads, water systems, health facilities and multipurpose buildings serving as evacuation centers during disasters.