DBM pushes 5% cap on unprogrammed funds in budget

MANILA, Philippines — The Department of Budget and Management (DBM) is proposing to institutionalize the agency’s practice of including a maximum threshold for unprogrammed funds.

Critics see unprogrammed appropriations as another version of the pork barrel.

Budget Secretary Amenah Pangandaman said the DBM’s legislative agenda includes putting a five-percent cap on unprogrammed funds of the proposed National Expenditure Program (NEP).

“Actually, those are international guidelines, when I went to the International Monetary Fund World Bank three years ago. We were scared as unprogrammed allocations are getting big,” she said.

“I asked them what the best practice is and they said five percent. Maybe that’s what the Department of Finance can do,” she added.

The nearly P250 billion unprogrammed fund for next year is 3.7 percent of the country’s proposed P6.793-trillion budget for 2026.

The proposed unprogrammed funds of the national government is slashed by nearly 68.8 percent from this year’s level.

The budget document showed that the proposed unprogrammed funds for this year is at P249.99 billion, equivalent to a P113.44-billion reduction from this year’s outlay.

Breakdown of the proposed allocation goes mostly to support the maintenance and other operating expense of foreign assisted projects at P97.3 billion, or almost 39 percent of the total fund.

Explaining the high budget on foreign projects, Pangandaman said some projects still wait for a “perfected agreement” and an approval from the Department of Economy, Planning and Development, thus this is included in the unprogrammed and not in programmed allocation.

This is followed by strengthening assistance for government infrastructure and social programs at P80.8 billion and revised Armed Forces of the Philippines modernization program fund at P50 billion.

Meanwhile, budgetary support to government-owned or controlled corporations (GOCCs) is at P6.89 billion and public health emergency benefits and allowances for health care and non-health care workers at P6.7 billion.

Pangandaman told reporters that release of unprogrammed funds responds to triggers, which includes additional revenues to the government.

“And sometimes, there are programs from departments and agencies that are not considered because the budget is not made every year, there are cut-off dates,” she said.

Palace defends OP  confidential funds

Malacañang yesterday justified the substantial amounts allocated to President Marcos’ trips and confidential and intelligence funds, saying they are needed as he carries out his roles as the country’s salesman to foreign investors and commander-in-chief of the armed forces.

The Marcos administration is seeking nearly P1.02-billion budget for the President’s domestic and international trips next year, lower than the P1.29-billion outlay for 2025. It is also proposing a P10.77-billion budget for confidential and intelligence funds, lower than this year’s P12.1 billion.

Asked about the travel budget during a press briefing yesterday, Presidential Communications Undersecretary Claire Castro said Marcos goes out to oversee security measures and to monitor the condition of various areas in times of calamities.

“You also saw the frequent trips of the President, because he is encouraging other countries to invest here in our country,” Castro said.

As for the confidential and intelligence funds, she said there is nothing wrong with such allocations as long as they are used properly.

“The President is the commander-in-chief and chief architect of national policy or national security and foreign policy and the President needs the funds,” she added.

Budget hearings begin August 18

Economic managers of President Marcos are scheduled to brief officials of the House, led by Speaker Martin Romualdez, on the executive department’s proposed P6.793-trillion national budget for 2026 on Aug. 18.

Rep. Mikaela Suansing, chairperson of the House appropriations committee, said budget hearings will commence next week, shortly after members of the Development Budget Coordination Committee have briefed them about the proposed budget.

“Aug. 18 will be the kickoff for budget deliberations. We want to do it as short and as quickly as possible. After the DBCC, the committee hearings for next year’s budget will then start,” she said of the “amended” schedule, which was first tentatively set on Sept. 1.

She confirmed that House members, along with their Senate counterparts, have agreed to “amend” Congress’ legislative calendar for their break, which was first set at Oct. 3 and was later moved to Oct. 10.

She noted that the Speaker has also made policy an “open bicam” hearing with senators, although the talks are still ongoing.

“But we are in close coordination with the senators on the open bicam, particularly with Senator Sherwin Gatchalian,” she said. “We will make it as open as possible.”

Budget deliberations will also be livestreamed, where everybody can have access and even members of civil society are free to watch.

“The CSOs engagement, we will do that in the course of the deliberations,” Suansing said.

House gives 2026  budget docs to observers

Speaker Romualdez turned over copies of the P6.793-trillion 2026 NEP to representatives of civil society organizations (CSOs) as part of efforts to for a more open and accountable government.

“This is not just about documents – it’s about trust,” Romualdez said. “The budget is the lifeblood of government. It tells our people where we are putting their hopes and their hard-earned taxes. If we want our people to trust us, they must see and feel that the budget is truly theirs.”

The ceremonial turnover, held at the Social Hall of the House of Representatives, follows the unanimous approval of House Resolution No. 94, which institutionalizes the participation of people’s organizations as non-voting observers in House budget deliberations.

The resolution was authored by Romualdez along with Tingog Party-list Representatives Yedda Marie Romualdez, Andrew Julian Romualdez and Jude Acidre.

Meanwhile, the Alliance of Concerned Teachers (ACT) called for the abolishment of all confidential and intelligence funds as it slammed the proposed P10.77-billion confidential fund of the Marcos administration, calling it “pork barrel in disguise.”

“Whether in Duterte’s hands or Marcos’, the confidential and intelligence funds serve as personal war chests for political patronage and repression leaving public services to survive on crumbs,” ACT chairperson Vladimer Quetua said.

Quetua noted that under the proposed 2026 NEP, P4.5 billion or nearly half of the total confidential and intelligence funds will go directly to the Office of the President. He warned that such allocations are prone to abuse and are nearly impossible to audit.

He said Congress should abolish all forms of confidential and intelligence funds and re-channel them toward urgent public needs, especially in education. –  Alexis Romero, Delon Porcalla, Jose Rodel Clapano, Bella Cariaso