Support for foreign-aided projects, AFP modernization top unprogrammed funds list

Support funds for foreign-assisted projects (FAPs), Armed Forces of the Philippines (AFP) modernization, and social programs will get chunk of the unprogrammed appropriations under the proposed P6.793 trillion budget for 2026.

A total of P243 billion has been set aside for unprogrammed appropriations, items that are funded only when there is an excess revenue collection or funds from foreign loans or grants.

According to the proposed budget, P97.3 billion was allocated to support FAPs; P50 billion for the Revised AFP Modernization Program; P38.8 billion for the Philippines counterpart of FAPs; and P45 billion for Strengthening Assistance for Government Social Programs. 

Other items included in the unprogrammed funds for 2026 are:

• P6.9 billion for Budgetary Support to Government-Owned and/or-Controlled Corporations  
• P3.6 billion for Program on Risk Management
• P210.5 million for refund of the Service Development Fee for the Right to Develop the Nampeidai Property in Tokyo, Japan
• P14.6 million for prior years' LGU Shares
• P333.5 million for fiscal support arrearages for the Comprehensive Automotive Resurgence Strategy (CARS) Program
• P2 billion for Marawi siege victims compensation program 
• P2 billion for Comprehensive and Adequate Insurance Protection of Strategically Important Government Assets and Interest

What exactly is the P45 billion for Strengthening Assistance for Government Social Programs for?

House appropriations panel chairperson Mika Suansing said the amount will be exclusively spent for basic social services, which are not infrastructure projects.

“Tanging mga social programs na nakatuon sa edukasyon, kalusugan at social pension na lamang ang pwedeng ipasok dito. Ibig sabihin po nito, at nais ko po itong bigyang diin, na wala ng flood control projects, wala ng mga tulay o wala ng mga kalsada na pwede hugutin mula sa unprogrammed appropriations para sa taong 2026,” Suansing said when she defended the retention of unprogrammed funds during the House plenary discussions. 

(Only social programs focused on education, health and social pension are allowed to be funded under this P45 billion. This means this amount, and I would like to stress this, this P45 billion is not for flood control projects. This amount cannot be used on bridges or roads.)

“Ang tanging pahihintulutan na lamang na infrastructure projects ay ang mga foreign-assisted projects (FAP). Ito po ang mga proyekto na pinupondohan ng ibang bansa o ng mga multilateral or international bodies tulad ng World Bank at Asian Development Bank. Hindi po natin maaaring tanggalin ang unprogrammed appropriations sa ilalim ng FAPS sapagkat hindi po natin pwedeng talikuran ang ating mga napagkasunduan sa international na level,” Suansing added.

(The only infrastructure projects allowed to be paid under unprogrammed appropriations are FAPs, as these are funded by international bodies such World Bank and Asian Development Bank. We cannot remove these items because we cannot turn our backs on our signed obligations.)

GMA News Online has sought comment from House appropriations panel senior vice chairperson Albert Garcia of Bataan and vice chairperson Zia Adiong of Lanao del Sur as to why the P50 billion allocation for the Armed Forces Modernization Fund and the P2 billion compensation for Marawi siege victims remained under the unprogrammed funds.

The House earlier moved to reduce the unprogrammed appropriations following revelations that questionable flood control projects were funded by such funds in 2023, 2024 and 2025.

In doing so, the House removed the P35.86 billion unprogrammed fund allocation for Strengthening Assistance for Government Infrastructure Programs or SAGIP.

It was the lone item that the House removed from the unprogrammed funds. —LDF, GMA Integrated News