5 days ago
Unprogrammed appropriations slashed to P250 billion in proposed 2026 budget
Unprogrammed appropriations exist 'outside the approved government fiscal program, which serve as an important tool for the government to address unforeseen expenditures and prioritize essential programs and projects,' the DBM said. File photo
The Marcos administration is reducing the amount as well as the share of unprogrammed appropriations or 'standby funds' in the proposed P6.793-trillion national budget next year.
Based on the Fiscal Year 2026 National Expenditure Program (NEP), the budget level for unprogrammed appropriations amounts to P249.99 billion, slashed by 68.79% from the P363.42 billion level in the Fiscal Year 2025 General Appropriations Act (GAA), net of vetoed items at over P168 billion.
The amount is equivalent to 3.68% of the proposed 2026 NEP, also lower than unprogrammed appropriations' 5.7% share in the 2025 GAA.
The Department of Budget and Management (DBM) defines unprogrammed appropriations as those that provide standby authority to incur additional agency obligations for priority programs or projects when revenue collection exceeds targets, and when additional grants or foreign funds are generated while appropriations with definite/identified funding as of the time the budget is prepared.
In simple terms, unprogrammed appropriations are akin to planned household purchases that may only proceed if extra money is available, either from additional income, like bonuses or from loans.
The unprogrammed appropriations were among the contentions in the controversial 2025 GAA amid allegations of insertions during the bicam—an issue which compelled both chambers of Congress to open the bicameral conference committee meetings to the public.
During the Kapihan sa Manila Bay Forum on Thursday, Budget Secretary Amenah Pangandaman defended the practice of having standby funds or unprogrammed appropriations in the national budget.
'You know the unprogrammed [appropriations] it's a standby fund… marami din naman nagagawa 'yan [it can accomplish a lot],' Pangandaman said.
The Budget chief cited that standby funds were tapped to finance the health emergency benefits of healthcare workers.
The Budget Department had earlier explained that unprogrammed appropriations exist 'outside the approved government fiscal program, which serve as an important tool for the government to address unforeseen expenditures and prioritize essential programs and projects.'
For her part, DBM Undersecretary Mary Anne dela Vega said the Budget Department maintains a 'ceratin percentage at least mga 5% of the total expenditure program' for the unprogrammed appropriations.
'We stick to our proposal that it should be 5% or lower of the total expenditure program,' dela Vega said during the news forum.
The breakdown of the proposed P249.99- billion unprogrammed appropriations were as follows:
Strengthening Assistance for Government Infrastructure and Social Programs - P80.86 billion
Budgetary Support to Government-Owned and/or Controlled Corporations - P6.895 billion
Support to Foreign-Assisted Projects - P97.3 billion
Program on Risk Management - P3.6 billion
Refund of the Service Development Fee for the Right to Develop the Nampeidai Property in Tokyo, Japan - P210.6 million
Prior Years' LGU Shares - P14.62 million
Public Health Emergency Benefits and Allowance for Health Care and Non-Health Care Workers - P6.76 billion
Revised AFP Modernization Program - P50 billion
Fiscal Support Arrearages for Comprehensive Automotive Resurgence Strategy Program - P33.5 billion
Marawi Siege Victims Compensation Program - P2 billion
Comprehensive and Adequate Insurance Protection of Strategically Important Government Assets and Interest - P2 billion
Pangandaman said the release of unprogrammed appropriations can be triggered by excess revenues, as certified by the Bureau of the Treasury, as well as additional foreign funds such as loans or grants. — BM, GMA Integrated News
