DBM backs limiting unprogrammed funds to 2%

The Department of Budget and Management (DBM) on Tuesday expressed support for the proposal to cut the share of unprogrammed appropriations in the national budget to the lowest level of 2%.

During a hearing of the Senate Committee on Finance, DBM Undersecretary Janet Abuel said the agency is supporting any move to “ lessen [and] to limit to the barest minimum” the unprogrammed appropriations.

“In the version of the bill, the latest version as filed by the chair, ang andito po is to cover support to foreign-assisted projects. Basically, ‘yun nalang ang mattitira kasi kapag lumabas ang proceeds ng loans, doon mare-release ang amounts,” Abuel said, citing provisions of the measures to reform of the national budget process.

(In the latest version of the bill as filed by the chair, what is only included there is to cover support to foreign-assisted projects. Basically, that's what will only be left because when the proceeds of the loans are released, that's when the amounts will be released as well.)

“And there is also a provision that it will be limited to 2% of the total expenditure program. The 2% is based on the average over the years and naghahanap kami ng basis but per our information, ito ang laging nagfo-float is hanggang 4% ‘yung acceptable international,” she added.

(There is also a provision that it will be limited to 2% of the total expenditure program. The 2% is based on the average over the years and we are looking for a basis but per our information, this is what was always floated — up to 4% is acceptable internationally.)

Abuel noted that in some countries like England and Thailand, the unprogrammed appropriations was set at 2%.

“The current po, as computed, 3.31%, Mr. Chair — that’s what the President mentioned. But the proposal in the bill, which we also support, is 2%. Gagawing 2% po (we’ll make it 2%), just like the other countries and below the so-called acceptable rate of 4%,” she said.

She said the DBM will leave that to the wisdom of Congress — whether the unprogrammed appropriations will be limited to either 2% or 3%.

Senate President Pro Tempore Panfilo "Ping" Lacson, on the other hand, warned about its "unintended consequence,” stressing that the country has to find a balance and consider the limitations in financial flexibility of the Executive.

“Baka meron palang kailangan mapondohan, na mag-realign o magamit na standby appropriations ng Executive branch. Have you considered that aspect?” Lacson said.

(Maybe there is something that needs to be funded, that needs to be realigned or that needs to be used from standby appropriations of the Executive branch. Have you considered that aspect?)

The DBM official agreed, saying, “‘Pag ano lang tayo, support to FAPs, wala nang iba. So, what are you are looking at — contingent fund, NDRRM fund, ‘yung mga ibang lump sums na pwedeng makargahan pero programmed na siya.”

(If we're just going to limit the unprogrammed funds to support FAPs, there’s nothing else. So, what are you looking at — contingent fund, NDRRM fund, the other lump sums that can be loaded but they're already programmed.)

To recall, when President Ferdinand ''Bongbong'' Marcos Jr. signed into law the 2026 General Appropriations Act (GAA), he vetoed nearly P92.5-billion worth of line items under the unprogrammed appropriations.

Only three items remained: support to foreign-assisted projects worth P97. 305 billion; revised AFP Modernization Program worth P50 billion; and Risk Management Program worth P3.6 billion.

Abuel said that two of such items may need not to be funded under the unprogrammed appropriations.

“Ang isang tinitignan doon, hindi naman kailangan ‘yung dalawa na nasa UA pa rin — ’yung risk management program and the revised AFP. Although ‘yung sa revised AFP po kasi malaki talaga,” she said.

(What we’re looking at is maybe the other two items don’t need to be in the UA—the risk management program and the revised AFP modernization program. Although the funding for the AFP modernization is really quite big.)

Senator Sherwin Gatchalian, chairman of the Senate committee on finance, then asked the DBM to also study the possibility of including the foreign-assisted projects on programmed appropriations.

“Kung isa na lang naman ang popondohan, why don’t we include it in the programmed [funds] but change the title to ‘support to foreign-assisted projects’? Kasi kung isa naman lang ang laman ng UA, ipasok na lang sa programmed pero in a form of lump sum,” he said.

(If there is only one thing left to be funded under the UA, why don't we include it in the programmed funds but change the title to 'support to foreign-assisted projects'? Because if there is only one thing to be funded there, let’s just include it in the programmed funds but in the form of a lump sum.)

Last month, the DBM said it was working on a “budgeting code,” a salient feature of which is to further reduce the share of unprogrammed appropriations in the national budget to below 5%. — BAP, GMA Integrated News