Albay Representative Rejects 2026 Budget Over Unprogrammed Allocations
Lagman, a vocal budget watchdog from Albay’s 1st District, has publicly refused to sign the 2026 General Appropriations Act (GAA) citing persistent unprogrammed appropriations or insertions. In a statement shared with The Manila Times, she argued that such practices undermine fiscal discipline and threaten the integrity of the budget process as the nation charts a path through mounting debt and a challenging fiscal outlook.
What Are Unprogrammed Appropriations and Why They Matter
Unprogrammed appropriations are funds not anchored to specific programs, activities, or projects at the outset of the budget cycle. In Philippine budgeting, these insertions can be used to address contingencies or emergencies, but critics say they open doors to discretionary spending and potential misallocation. Lagman stressed that unprogrammed allocations risk hijacking funds from programmed appropriations and diverting them toward priorities not firmly vetted by Congress.
Lagman’s Core Arguments Against House Bill 4058
In her statement, Lagman acknowledged some budgetary reforms have been adopted but argued they are insufficient to fully curb malpractices. She said she would rather scrap unprogrammed appropriations altogether unless there are stringent safeguards ensuring timely delivery of essential social and economic services. She emphasized that any remaining unprogrammed funds should not exceed the level set in the National Expenditure Program (NEP) for the corresponding fiscal year, referencing prior norms in 2024 and 2025.
A Call for Judicial Oversight of the Budget Process
Lagman contended that congressional power over budget matters must be exercised prudently and transparently. The 2026 budget, she noted, includes a debt service allocation that she characterizes as disproportionately representing only interest payments rather than principal obligations. She warned that relying too heavily on debt could strain the nation’s financial framework unless balanced by credible revenue measures and controlled expenditures.
Debt and Financing Concerns
According to Lagman, the country must make substantial principal repayments totaling more than P1 trillion, funded by both domestic and foreign borrowings. She also highlighted a projected budget gap exceeding P1.6 trillion, requiring borrowings surpassing P2.6 trillion. With a national debt around P17.47 trillion as of August 2025, she framed the issue as a proving ground for fiscal stewardship in contemporary governance.
Pragmatic Alternatives: Supplemental Budgets and Reform
Despite opposing the current 2026 budget as presented, Lagman did not dismiss the idea of supplemental budgets entirely. She suggested that such instruments can provide a faster response to contingencies while preserving the deliberative nature of appropriations in normal times. Her stance underscores a broader debate about balancing agility in the face of emergencies with the need for accountability and transparency in public spending.
Historical Context: Previous Controversies and Lessons
Lagman has long challenged insertions in budgets. Previously, she questioned the 2025 budget’s insertions and noted a divergence that occurred during the bicameral conference on the Albay 1st District line item, which she linked to broader instances of fund reallocation. Her critique extends beyond a single year, framing unprogrammed allocations as a systemic risk to budget integrity.
What’s Next
As the 2026 national budget process moves forward, Lagman’s position places pressure on fellow lawmakers to reassess the role of insertions and the mechanisms that govern debt servicing. The debate will likely influence budget talks and potential reforms designed to curb discretionary spending while ensuring critical services—such as education, health, and nutrition—receive timely support. Stakeholders will watch whether amendments can reconcile Lagman’s insistence on fiscal discipline with the government’s need to fund essential programs.
Bottom Line
Lagman’s refusal to sign House Bill 4058 reflects a broader commitment to preventing the kind of unprogrammed appropriations she views as fertile ground for abuse. Her stance signals a continued push for tighter controls, greater transparency, and more robust safeguards in the budgeting process as the country advances toward a more accountable fiscal framework.
