MANILA, Philippines — The proposed 2025 budget has unprogrammed funds amounting to P158.6 billion, according to Department of Budget and Management (DBM) Secretary Amenah Pangandaman.
The 2024 National Expenditure Program (NEP) had a proposed P281.9 billion, but Congress raised this to P731.4 billion in the final approved budget.
“Ang total unprogrammed po natin for NEP next year is P158.6 billion, it posted a significant decrease of P572 billion or 78.31% from the 731 allocations for this year po. So, meaning iyong total na unprogrammed appropriation natin for next year is only 2.5% of the P6.352 trillion proposed budget,” Pangandaman said in a press briefing in Malacañan Palace on Thursday.
(Our total unprogrammed funds for NEP next year is P158.6 billion it posted a significant decrease of P572 billion or 78.31% from the 731 allocations for this year. So, that means the total, unprogrammed appropriations for this year is only 2.5% of the P6.352 trillion proposed budget.)
According to Pangandaman, unprogrammed funds are standby funds. Most of these funds are assigned to foreign assisted projects that have yet to be approved by the Investment Coordination Committee and the National Economic and Development Authority Board.
The DBM only assigned budgets to foreign-assisted projects approved by the NEDA Board by March 31, while there are unprogrammed funds for the ones that the budget agency believes will be approved by this year.
What’s the fuss about unprogrammed funds?
The DBM’s website further supports Pangandaman’s explanation of unprogrammed funds.
“It is a form of standby appropriations, meaning if at any given point when excess revenues are not generated, and an item of appropriations is found to be deficient or even non-existent, then unprogrammed appropriation will be triggered,” the DBM said.
The controversy surrounding unprogrammed funds during the Marcos administration came about when Congress increased the unprogrammed funds in the 2024 budget.
Lawmakers from both chambers of Congress protested the unprogrammed funds, questioning its constitutionality.
“This year’s General Appropriations Act, which took effect on 01 January 2024, suffers a constitutional infirmity insofar as the bicameral conference committee inserted P449.5 billion in excess of the unprogrammed appropriations of P281.9 billion recommended by the President in the national budget or the National Expenditure Program,” Albay Rep. Edcel Lagman said in a statement in January.
Senate Minority Leader Aquilino “Koko” Pimentel III echoed the sentiment, questioning the sudden increase. Pimentel said that Congress was now allowed to make increases.
“Congress can maintain the appropriations or reduce the appropriations, but it cannot increase the appropriations,” Pimentel said during the budget season in 2023.
Lagman, together with Camarines Sur 3rd District Rep. Gabriel Bordado and Basilan Rep. Mujiv Hataman, filed a petition at the Supreme Court in January which questioned the constitutionality of the increase.
Shortly after, Presidential Communications Secretary Cheloy Garafil said that “the Executive Department will answer accordingly if required by the Supreme Court.”
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