‘Standby funds’ or pork barrel? How unprogrammed appropriations actually work
MANILA, Philippines — Unprogrammed appropriations (UA) within the budget have been a contentious topic amid the largest corruption scandal under the Marcos administration — but what are they and how do they work?
Many lawmakers have labeled the UA as “pork barrel,” or funding meant to benefit only the budget’s proponent and their respective districts.
Pork barrel has a notorious history in the Philippines, with the 2013 Priority Development Assistance Fund (PDAF) scam being among the country’s most shocking corruption scandals of that decade.
The alleged kickback scheme in the Department of Public Works and Highways (DPWH) has been likened to the PDAF scam — with billions of pesos in public funds suspected of being stolen through kickbacks, resulting in ghost or substandard flood control projects.
The Department of Budget and Management (DBM) formally defined the UA as “standby funds,” rejecting claims that they are pork barrel.
The Supreme Court has ruled that pork barrel is unconstitutional — unprogrammed funds are not.
While pork barrel lacked transparency and allowed lawmakers excessive control over the budget, unprogrammed funds have more specific rules before they can be accessed, the DBM told Philstar.com.
How the UA is released
The UA can only be accessed once there are excess or windfall revenues or approved loan agreements for foreign-assisted projects. It is not included in the total appropriations in the General Appropriations Act (GAA), so it has no set amount once the law is passed.
For the UA to be released to an implementing agency, several steps are required.
The head of the agency must submit a formal request to the DBM, complete with proper justification and documentation.
The DBM will then evaluate the project to ensure fiscal sustainability, while the Bureau of the Treasury must issue certification that there are excess funds or an effective loan agreement for the project.
Once the requirements and GAA conditions are met, the DBM can release a Special Allotment Release Order (SARO), which authorizes the release of the funds to the agency.
The 2025 GAA included a special provision allowing the DBM to modify the amounts to be released under certain conditions.
Where the UA goes
The DBM described the UA as a “fiscal buffer,” saying it enables the government to respond to unforeseen events such as the COVID-19 pandemic or other calamities.
Projects funded through the UA include loan proceeds and peso counterparts for foreign-assisted projects, social protection initiatives, education and health services, personnel benefits and more.
Special projects such as the Marawi Compensation Program also receive UA funding, according to the DBM.
The UA also supports foreign-assisted projects whose agreements are not yet finalized but are expected to be completed within the fiscal year. The DBM said this helps projects be implemented faster.
The problem with the UA
The DBM has consistently defended the presence of the UA, saying it allows the government to remain flexible in addressing national needs. Despite this, the funds remain controversial.
The UA has expanded under the Marcos administration, with lawmakers increasing standby funds beyond what the executive branch originally requested.
The issue peaked when lawmakers added P449.5 billion in unprogrammed funds to the 2024 national budget. A case has since been filed before the Supreme Court seeking to nullify this provision, as opposition lawmakers argued that the Constitution prohibits Congress from exceeding the amount prescribed by the president.
Following the DPWH scandal, some lawmakers have raised concerns that the UA may have funded anomalous projects. Sen. Sherwin Gatchalian said that from 2023 to 2024, P1.5 billion from the UA went to flood control projects involving Wawao Builders — one of the contractors linked to kickback schemes.
Recently, Sen. Ping Lacson also flagged that P50 billion worth of UA was diverted to the DPWH.
While the House of Representatives has approved its version of the budget with the UA intact, the Senate is seeking to remove it once and for all.
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