Manila: President Ferdinand R. Marcos Jr. has expressed support for the Department of Budget and Management's (DBM) proposal to lower the cap on unprogrammed appropriations to as low as 3 percent of the national budget, Malaca±ang announced on Thursday.
According to Philippines News Agency, Palace Press Officer Claire Castro revealed that the DBM aims to adopt a more prudent and disciplined fiscal policy by setting the unprogrammed appropriations at a rate lower than 5 percent of the total national budget. This adjustment is based on historical data and fiscal trends.
Castro stated that the DBM is currently drafting the proposed Philippine Budgeting Code. This code seeks to institutionalize key fiscal reforms, including establishing clearer parameters for the level, scope, and conditions for the release of unprogrammed funds.
"A central policy intention under the proposed reform is to ensure that unprogrammed appropriations are confined to a limited and clearly defined purpose," Castro said during a Palace press briefing. This measure aims to prevent the use of unprogrammed appropriations as a broad or discretionary funding mechanism and to enforce fiscal discipline.
Castro also mentioned that the draft measure will be submitted for review by the economic team, the Executive Secretary, and ultimately by the President. The proposal is still under policy development and interagency consultation. The precise threshold will remain subject to further deliberation and the President's approval in the context of the proposed Budgeting Code.
Acting DBM Secretary Rolando Toledo emphasized on Tuesday the need to reduce the unprogrammed appropriations level to 3 percent of the total national budget. This proposal is intended to enhance transparency and accountability in budget management, especially in light of past controversies surrounding unprogrammed funds.
Data from the DBM indicates that unprogrammed appropriations have been steadily declining, with allocations projected to fall to PHP150.9 billion in 2026 from PHP363.4 billion in 2025, significantly lower than the PHP731.4 billion in 2024 and PHP807.2 billion in 2023.
