Senate to scrap unprogrammed funds from 2026 budget

MANILA, Philippines — The Senate will move to eliminate all unprogrammed funds from the 2026 national budget, Senate President Vicente Sotto III said yesterday, calling them a source of questionable insertions that have fueled recent controversies in government spending.

“We will, as much as possible and, if possible, 100 percent no unprogrammed funds,” Sotto told reporters, saying he had already discussed the matter with Senate finance committee chair Sen. Sherwin Gatchalian. 

“When we discuss the budget finally on second reading before third reading, there should be no unprogrammed funds. I-program natin kung anong kailangan... Para maliwanag, kitang-kita,” he said, stressing it should be programmed if needed for clarity and transparency.

Unprogrammed appropriations, which can only be tapped if the government collects excess revenues or secures additional foreign-assisted loans, have long served as standby funds for extra projects.

But they came under scrutiny after lawmakers’ insertions pushed the 2025 unprogrammed funds to P531.7 billion before President Marcos vetoed P168.24 billion from the total.

Sotto said such last-minute amendments or additions – often done after second reading or during bicameral conferences – breed what he described as “insertions” that evade proper scrutiny. 

“That’s what we shouldn’t tolerate. No matter how beautiful the insertion, what’s important is that you do it in plenary. Who is proposing it, what is being proposed and where it will be sourced should be clear,” Sotto said.

He also welcomed the decision not to certify the budget bill as urgent this year, saying it would give lawmakers more time to review proposed appropriations before final approval. 

“Better if not approved the same day. You have three days to go over and review what you approved on second reading before you vote on the third reading,” he said.

Gatchalian earlier said that removing unprogrammed funds from the 2026 national budget would help ensure “immediate funding” for projects and reduce the country’s fiscal deficit. 

He said only foreign-assisted components of unprogrammed appropriations – those backed by official loans – should be retained, while the rest should be folded into the programmed budget for greater transparency.