‘Not discretionary or secret’: DBM defends use of unprogrammed funds
MANILA, Philippines — The Department of Budget and Management (DBM) defended the use of unprogrammed funds in the budget, insisting that they are standby allocations with several conditions before they can be accessed.
The DBM cited its release of an additional P5 million to fund the Department of Social Welfare and Development’s Assistance to Individuals in Crisis Situations program, which was charged against the 2025 national budget.
“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,” DBM Secretary Amenah Pangandaman said.
“Unprogrammed appropriations 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,” she added.
Pangandaman said that unprogrammed funds are “fiscal buffers” that allow the government to respond to emergency situations without breaking the set fiscal program.
Unprogrammed allocations have been tagged as one of the areas where budgetary insertions are allegedly made for later kickbacks. One of the lawmakers who allegedly made a budget insertion into the unprogrammed fund was Sen. Joel Villanueva.
This has prompted several lawmakers to seek the complete removal of unprogrammed funds.
However, the House of Representatives has already passed the 2026 General Appropriations Bill, which has been criticized for containing P250 billion in unprogrammed funds.
Senate President Tito Sotto and Sen. Sherwin Gatchalian are eyeing the elimination of unprogrammed allocations for local projects.
Foreign-assisted projects would be the only exemption for unprogrammed funds, Sotto said.
During the term of President Ferdinand Marcos Jr., unprogrammed funds have ballooned. In 2024, unprogrammed funds reached a whopping P731 billion. Congress has consistently inflated the unprogrammed funds beyond what the Executive Branch had requested.
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