President Marcos said he is prepared to reject and even reenact the national budget if Congress insists on fund realignments that undermine his administration’s priorities.

In the third episode of his podcast released on Monday evening, Aug. 4, the President warned that some reallocations have led to the misuse of public funds and the scrapping of critical foreign-assisted projects.

“Ang pinakamalaking naging problema, ‘yung foreign-assisted projects, tinanggal halos lahat ng funding (The biggest problem was that almost all funding for foreign-assisted projects was removed),” he said.

“Sobra na yun. Sobra na yun. Nangungutang tayo para mangurakot itong mga ito (That’s too much. We're borrowing money just so these people can steal it),” he added.

Marcos said he would return the 2026 General Appropriations Bill if lawmakers made excessive insertions or moved funds toward projects not aligned with the National Expenditure Program (NEP).

“Kung hindi alinsunod doon sa plano (If it’s not according to plan), we will have to return it,” he said.

He also emphasized that if the two chambers of Congress fail to act responsibly on the budget, he is open to operating under a reenacted 2025 budget.

“Oh yes,” Marcos said when asked if he was willing to go that route.

“I made New Year’s Day the hard deadline. I’m sure we will find a way,” he added.

President Marcos explained that the Executive has the constitutional duty to prepare the NEP, which outlines the government’s development plans and priorities, while Congress has the power to review and approve the budget.

However, he raised concerns over what he called “lantarang insertion” (overt insertions) that not only distort the budget but also put public funds at risk.

“And the worst part of this all, ang napupunta kung minsan sa mga project na hindi maganda, napupunta sa unappropriated (sometimes the projects that get funded are bad ones, the unappropriated),” he said.

Marcos cited the defunding of projects backed by international lenders as particularly harmful, saying these initiatives are essential to development and government credibility.

“Kailangan natin ibalik yun dahil importante yung mga foreign-assisted projects. At saka sinisira pati ‘yan ang reputation natin (We need to restore them because they’re important, and this damages our reputation),” he said.

Although President Marcos did not name specific lawmakers or agencies, he made it clear that fund diversion and kickbacks would be dealt with.

“Sobra na yun (That’s too much),” he said.

He said some officials reallocate funding away from useful programs and then implement projects that are either substandard or non-existent, often to the detriment of ordinary Filipinos.

While he acknowledged that Congress has the constitutional “power of the purse,” Marcos insisted that the Executive must ensure the budget reflects national goals.

“Trabaho naman namin na magbigay ng plano… para lahat ng ating gustong gawin ay ating magagawa. At hindi nawawala, nawawaldas, nananakaw ang pera ng tao (Our job is to provide the plan so we can implement it—and to make sure the people's money isn’t lost, wasted, or stolen),” he added.

In his State of the Nation Address (SONA) on July 28, President Marcos warned Congress that he will reject the proposed 2026 national budget if it deviates from the government’s NEP, even at the risk of operating under a reenacted budget.

Marcos’ statement was triggered by a scathing critique of corruption and inefficiency in public infrastructure, particularly flood control programs that he said had collapsed, failed, or never existed.

“For the 2026 national budget, I will return any proposed general appropriations bill that is not fully aligned with the National Expenditure Program,” Marcos said.

“I am willing to do this even if we end up with a reenacted budget,” he added.

Following early tensions with Congress over his warning against questionable insertions, Communications Undersecretary Claire Castro explained that President Marcos is open to changes in the proposed 2026 national budget as long as they are justifiable and not intended to misuse public funds.

“Kung mga insertion po na ito ay masasabi naman po natin na may kabuluhan, malamang po ay hindi ma-veto (If the insertions are considered meritorious, they will likely not be vetoed),” she said on Friday, Aug. 1.

“Pero pag nakikita po nila na wala naman po itong pagpupuntahan at maaaring madala lamang sa pang-aabuso, hindi po mag-aatubili ang Pangulo na ito ay i-veto (But if they see that the insertions serve no clear purpose and could lead to abuse, the President will not hesitate to veto them),” she added.

When asked to confirm reports that the 2026 NEP will be submitted to the House of Representatives on Aug. 13, Castro said the budget document will be ready on time.

“Ayon po kay Secretary [Budget] Amenah [Pangandaman], tapos na po or tinatapos na po at makakapag-submit on time (According to Secretary Amenah, it’s either completed or being finalized and will be submitted on time),” she said.