Sotto pushes to scrap unprogrammed funds in 2026 budget
MANILA, Philippines — Senate President Tito Sotto is pushing to eliminate unprogrammed appropriations for locally funded projects, saying only foreign-assisted programs should remain under this funding scheme.
At a press briefing on Monday, October 6, Sotto said the move aims to tighten transparency in the national budget after revelations that lawmakers’ insertions into unprogrammed funds have been used in alleged kickback schemes.
“I have discussed it with our chairman of the committee on finance. We will, as much as possible — and if possible 100% — have no unprogrammed funds,” Sotto said.
Reform push. Unprogrammed appropriations are standby unallocated funds that can be released only under certain fiscal conditions, such as excess revenue collection or new loans. These allocations have long drawn criticism for being vulnerable to abuse.
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Now, Sotto said, every project, as much as possible, must be a line item. He also stressed that by the time the proposed budget reaches second reading, no further changes should be made during the bicameral conference committee.
“It must be clear who the proponent of every budgetary item is,” he said.
He added that only foreign-assisted projects should be exempt, since these are typically funded by external loans that trigger automatic releases once approved.
Under President Ferdinand Marcos Jr., Congress has repeatedly expanded unprogrammed appropriations beyond what the executive branch initially asked for, drawing scrutiny from watchdog groups and reform advocates.
Controversy. Sen. Joel Villanueva has been accused by a former Department of Public Works and Highways (DPWH) engineer of inserting projects as unprogrammed funds for later kickbacks, including those awarded to Wawao Builders, a contractor linked to ghost projects. Funding for Wawao Builders has since been pulled from the unprogrammed fund.
Sen. Sherwin Gatchalian, who chairs the Senate finance committee, has expressed support for Sotto’s position, saying the chamber is intent on maintaining full transparency in the 2026 budget deliberations.
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