PBBM vetoes P92.5 billion unprogrammed appropriations

President Ferdinand Marcos Jr. vetoed P92.5 billion in unprogrammed appropriations from the 2026 national budget.

Among the vetoed items were the Fiscal Support to the CARS program (P4.321 billion) and the RACE program (P250 million), intended to provide tax incentives to car manufacturers.

Senator Sherwin Gatchalian expressed concern, stating that these programs were meant to fulfill existing government obligations to Toyota and Mitsubishi, amounting to approximately P4.2 billion.

These tax incentives, promised to encourage investment, have reportedly not been released for the past four to five years.

Gatchalian explained that the inclusion of these items under unprogrammed funds was a "book entry" to finally settle the government's obligation, as the incentive is in the form of tax credits where the government effectively pays the Bureau of Internal Revenue (BIR) on behalf of the car companies.

He noted that failing to honor these promises is embarrassing for foreign investors already operating in the Philippines.