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271059/271347/E-02472/E-04036 Representative Edcel C. Lagman, substituted by Albay First District Representative Krisel B. Lagman, et al. Vs. The Congress of the Philippines, et al./Aquilino “Koko” Pimentel III and Pantaleo “Bebot” Alvarez Vs. Lucas P. Bersamin, in his capacity as executive secretary, and Amenah F. Pangandaman, in her capacity as secretary of the Department of Budget and Management/Filipinos for Peace, Justice and Progress Movement, Inc. (FPJPM), represented by its president and chairperson, Joseph F. Cadsawan, and Gloria T. Puzon, chapter Officer Vs. The House of Representatives, et al./Edgar R. Erice and Leila De Lima Vs. The Senate of the Philippines, et al. — Official PDF
271059/271347/E-02472/E-04036 — Promulgated October 7, 2026 · 2026 · Supreme Court 2026 / Decision or signed resolution
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DIGITAL P. 13 / 121
Decision 13 G.R. Nos. 271059, 271347, E-02472 and
E-04036
With the magnitude of the amounts involved and the risk of
unconstitutional release and expenditure of public funds, the Petitions were
filed questioning the constitutionality of the provision for Unprogrammed
Appropriations and the increases thereto.
SAGF and Special Road Fund
The Petition in G.R. No. E-0247235 assails the constitutionality of
Republic Act No. 12116 (2025 GAA) based on the upward adjustment made
by Congress through the Bicameral Conference Committee to the Special
Accounts in the General Fund (SAGF) and the DPWH's Special Road Fund,
which allegedly violated Article VI, Section 25(1) of the 1987 Constitution.36
Respondents, through the OSG, filed their Comment to the Petition.37
A SAGF is a fund where "proceeds from specific revenue measures and
grants eannarked by law for specific priority projects are recorded."38
Meanwhile, the Special Road Fund is a SAGF, where collections of Motor
Vehicle User's Charges by virtue of Republic Act No. 8794,39 as amended,
and deposited in the National Treasury, are credited and earmarked solely for
the construction, upgrading, repair, and rehabilitation of roads, bridges, and
road drainage.40
On July 29, 2024, the DBM submitted the 2025 NEP to Congress,
amounting to PHP 6,352,390,000,000.00, broken down as follows: 41
Description .Amountin 2025 NEP
New General Appropriations PHP 4,405,895,827,000
Automatic APnronriations PHP 2,105,159,629,000
Total Available APnropriations PHP 6,511,055,456,000
Less: Unprogrammed Annropriations PHP 158,665,456,000
Total Exnenditure Prol!ram FHP 6,352,390,000,000
Automatic appropriations are further broken down into the following
components, with the SAGF amounting to PHP 27,352,123,000.00:42
35 Titled Filipinos for Peace, Justice and Progress Movement, Inc. v. House of Representatives. Petition
for CerthJrari and Prohibition (With Urgent Prayer for the Issuance of a Temporary Restraining Order
and/or Writ of Preliminary Injunction) was filed on September 17, 2026.
3<, The Conoress may not increase the appropriations recommended by the President for the. operation of·
the Gove7-nment as specified in the budget. The form, content, and manner of preparation of the bhdget
shall be prescribed by law.
17 Comment filed by'the OSG on November 7, 2025.
,33 Glossary of Terms, 2025 Budget of Expenditures and Sources of Financing F.Y. 2025, P: 899. 39 An Act Imposing a Motor Vehicle User's Charge on Owners of All Types of Motor Vehicles and 0 ther /1
Purposes (2000).
'° [mplementing Rules and Regulations of Republic Act No. I 1_239 (20 I 9), sec. 3._ .. 1 . .
41 2025 NEP, Annex A, Summary of Appropriations and Obhgat10ns of the Nat10nal Government C.Y.
2023-2025, Introduction Table I & Detailed Annexes, pp. 1105, 1121.
42 Petition (G.R. No. E-02472), par. 5.30.
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