THE budget will govern where funding raised for unprogrammed appropriations will be used, with no wiggle room to steer the funds towards other purposes, the Department of Budget and Management (DBM) said.
“We stick to the very nature of unprogrammed appropriations — (they are a) standby fund,” Budget Secretary Amenah F. Pangandaman said on the sidelines of a hearing.
“The bulk of the unprogrammed appropriations is for foreign-assisted (projects) subject to approval of the NEDA (National Economic and Development Authority) Board.”
Next year’s P6.352-trillion national budget contains as-yet unfunded items of P158.67 billion, 78.31% lower than this year’s P731 billion. The government has not yet sourced the funds for these items and can resort to loans, new taxes, or stronger-than-expected revenue collections.
The standby funds include P78.36 billion for the Strengthening Assistance for Government Infrastructure and Social Programs, P26.27 billion in budgetary support to government-owned and -controlled corporations, and P25.46 billion for support to foreign-assisted projects.
Next year’s unprogrammed appropriations also include half of the total allocation for the Revised Armed Forces of the Philippines Modernization Program at P25 billion.
“I think there’s no agreement yet about their other equipment and projects” of the AFP, Ms. Pangandaman said.
Also to be funded on an as-available basis are the Marawi Siege Victims Compensation Program (P2 billion), the Risk Management Program (P1 billion), Fiscal Support Arrears for the Comprehensive Automotive Resurgence Strategy Program (P364.1 million), and the service development fee refund for the right to develop the Nampeidai property in Tokyo (P210.58 million).
The unprogrammed appropriations have been reduced after the bulk of government projects were classified as backed by programmed funds, Ms. Pangandaman has said.
The status of monthly releases charged against unprogrammed appropriations will be posted on the DBM’s website, according to the 2025 National Expenditure Plan.
Zy-za Nadine M. Suzara, public budget analyst at the Institute for Leadership, Empowerment, and Democracy, said legislators must ensure that unprogrammed appropriations for next year do not breach the budget ceiling.
“Congress is allowed to move things around in the proposed version of the budget for as long as they do not violate the constitutional prohibition on increasing the total budget ceiling. The increase in the unprogrammed appropriations for the past three fiscal years since the 2022 GAA (General Appropriations Act) was passed had the effect of increasing the total budget ceiling,” she said via Viber.
In January, minority legislators questioned before the Supreme Court the constitutionality of the P450 billion in unprogrammed appropriations inserted by the bicameral conference committee shortly before the passage of this year’s P5.768-trillion budget.
Meanwhile, Ms. Pangandaman said the P89.9 billion in requested fund transfers from the Philippine Health Insurance Corp. (PhilHealth), will be used for social services and infrastructure, and not necessarily for health-related projects. — Beatriz Marie D. Cruz
