DBM: Unprogrammed appropriations serve as fiscal buffers not 'secret funds'

The Department of Budget and Management (DBM) on Tuesday defended the nature of unprogrammed appropriations and explained how it could be tapped as fiscal buffers in times of calamities.

“Unprogrammed appropriations (UAs) are not discretionary or secret funds, but standby allocations duly authorized and approved by Congress. These funds can only be accessed when there are excess or windfall revenues, new revenue measures, or valid loan agreements for foreign-assisted projects,” Budget Secretary Amenah Pangandaman said.

The statement comes after  some lawmakers are moved for its removal in the proposed P6.793-trillion national budget for 2026.

The Budget chief stressed that unprogrammed funds matter most for rapid disaster response, serving as the government’s financial lifeline in times of devastating calamities.

“UAs usually serve as fiscal buffers, enabling the government to respond to unforeseen needs or urgent national priorities without breaching the fiscal program approved by Congress,” Pangandaman said.

'Financial lifeline'

The 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.

Pangandaman said that in normal circumstances, unprogrammed funds support key programs such as assistance to rice farmers, social protection initiatives like the Department of Social Welfare and Development’s (DSWD) Assistance to Individuals in Crisis Situations (AICS) and Food Stamp Program, higher education subsidies, health infrastructure, personnel benefits, renewable energy, and national defense modernization.

“But unprogrammed funds matter most in times of catastrophes when tapping UAs become the gov’t financial lifeline for quick relief and recovery response,” the Budget chief said.

GAA

Pangandaman cited the government’s rapid mobilization of unprogrammed appropriations during the COVID-19 pandemic, as well as in 2024, when these funds supported crucial projects in agriculture, social protection, education, health, and infrastructure—all authorized under the General Appropriations Act (GAA).

Several members of the House of Representatives defended the decision of the House Committee on Appropriations and its Budget Amendments Review Subcommittee to retain unprogrammed appropriations in the proposed 2026 national budget.

The Budget Amendments Review Subcommittee of the House appropriations committee slashed the funding for some items under unprogrammed appropriations in the proposed P 6.793-trillion national budget for 2026. 

As part of the changes, funding for local infrastructure projects may no longer be sourced from the P80.86 billion allocation under the Strengthening Assistance for Government Infrastructure and Social Programs (SAGIP).

The SAGIP allocation was reduced to P45 billion for foreign-assisted projects and will be now called the Strengthening Assistance for Government Programs (SAGP).

Earlier, Senate President Vicente "Tito" Sotto III said he will push to remove unprogrammed funds in the national budget for next year—a proposal that got the backing of opposition lawmakers in the lower chamber.

However, Malacañang said this is unlikely to happen, adding that there are enough safeguards prior to the disbursement of these allocations. 

In a press briefing on Wednesday, Palace press officer Atty. Claire Castro said unprogrammed funds are used for government programs and in times of emergency cases and situations. 

AICS

The Budget Department approved the release of an additional P5 billion to fund the AICS program, which could benefit another 411,188 Filipinos in need from October until this year ends.

Pangandaman said the amount aims to address the budget deficiency under the Protective Services for Individuals and Families in Difficult Circumstances component of the DSWD.

The approved allotment and corresponding Notice of Cash Allocation are chargeable against the Fiscal Year 2025 General Appropriations Act.

“This latest fund release underscores the importance of unprogrammed appropriations as fiscal buffers that enable the government to respond swiftly to social and humanitarian emergencies,” Pangandaman said.

ICI

Meanwhile, Pangandaman is scheduled to appear before the Independent Commission for Infrastructure (ICI) on October 14, 2025, to provide expert insights into the National Expenditure Program and GAA processes.

The ICI invited her to explain how unprogrammed funds are released and to clarify the nature of requests and proposals submitted to the DBM by the Department of Public Works and Highways (DPWH) for inclusion in the NEP.

The Budget chief is also expected to clarify the national budget processes—covering preparation, legislation, execution, and accountability—which, she noted, provide no room for DBM to participate in the so-called “budget insertion.”

“The DBM does not have the authority to introduce insertions into the national budget. Referred to as Congress-Introduced Changes and Adjustments (CICAs), such insertions occur not during NEP preparation, but during the Bicameral Conference Committee deliberations between the two Houses of Congress,” Pangandaman said.

The Budget chief said that under the Constitution, Congress retains the “power of the purse.”

“Once the President submits the proposed NEP to Congress, the Executive’s role—through the DBM—is limited to explaining, clarifying, and defending the proposed allocations. The authority to introduce, realign, or amend items rests solely with the legislative branch,” she said. —VAL, GMA Integrated News