P450 billion unprogrammed funds has built-in safeguards, says DBM

MANILA, Philippines — The Department of Budget and Management (DBM) maintained that the P450 billion in unprogrammed appropriations approved for next year has built-in safeguards to prevent unconstitutional spending.

In a statement, Budget Secretary Amenah Pangandaman defended the unprogrammed funds approved on top of the recently signed record P5.768-trillion budget for 2024.

Some P450 billion has been allotted as standby appropriations for next year.

“Unprogrammed funds are standby appropriations, distinct from the approved government fiscal program, which serve as an important tool for the government to address unforeseen expenditures and prioritize essential programs and projects,” Pangandaman said.

“Unprogrammed appropriations of the 2024 budget has built-in safeguards to prevent unconstitutional spending,” she said.

Unprogrammed appropriations provide standby authority to incur additional agency obligations for priority programs or projects when revenue collection exceeds targets, and when additional grants or foreign funds are generated.

The budget chief pointed out that unprogrammed funds are not automatically allocated and can only be released if several funding conditions are met.

“Should there be excess revenues that may trigger the availability of the unprogrammed funds, government agencies are required to submit necessary requirements before given access to the standby fund,” Pangandaman said.

“Such conditions ensure that spending stays within legal limits,” she said.

For this year, the government has so far made adjustments to the national budget by almost P270 billion, mainly for unprogrammed appropriations, to reach a record P5.54 trillion.

As of end-November, the 2023 adjusted program is 23 percent higher than last year’s level.

Data showed that of the unprogrammed appropriations, the biggest chunk at P196.23 billion went to support foreign assisted projects of the departments of Agrarian Reform, Agriculture, Finance, Health, Labor and Employment, Public Works and Highways, Trade and Industry, Transportation, and Social Welfare and Development, as well as the Philippine Competition Commission.

Some P22.28 billion was meant for priority infrastructure programs for roads, bridges, multipurpose buildings, flood control and water systems of the DPWH.

Another P20.84 billion was earmarked for infrastructure projects and social programs of the DA and DSWD. Another P13.19 billion was allotted to the National Food Authority and P4 billion for the allowances of healthcare workers.

Some P4.14 billion and P2.14 billion were also given to the DPWH as a government counterpart for their projects and right of way and subsidy support, respectively. Another P1.3 billion was allotted to the DOTr for the provision for payment of arrears.

About P4.6 billion was allotted for the miscellaneous personnel benefits fund and staffing modifications and upgrade of salaries of various state agencies.

The Philippine Postal Corp. was likewise allocated with P500 million for the reimbursement of franking privilege services.

The remaining P100 million was earmarked for the implementation and expansion of programs, activities and projects of the Philippine Space Agency.