DBM chief wants to limit unprogrammed appropriations

BUDGET SECRETARY Amenah F. Pangandaman wants to limit unprogrammed appropriations to not more than 5% of the national budget.

Speaking at the Kapihan sa Manila Bay briefing on Thursday, Ms. Pangandaman said she wants to cap the standby funds at 5% of the budget, guided by international standards.

“When I went to the International Monetary Fund (IMF) three years ago, we were concerned about the rising trend in unprogrammed appropriations after the NEP (National Expenditure Program) was passed. I asked them what the best practice was, and they told me at least 5%,” she said.

The DBM on Wednesday submitted to Congress the proposed P6.793-trillion national budget for 2026.

Unprogrammed appropriations were allotted P249.9 billion, equivalent to 3.68% of the proposed 2026 NEP.

This was 68.79% lower than the P363.42-billion allocation this year, which accounted for 5.7% share of this year’s budget.

According to the DBM, unprogrammed appropriations refer to standby funds that can only be used for certain projects only when revenue collection exceeds targets or when additional grants or foreign funds are secured.

Broken down, these include support for foreign-assisted projects (P97.31 billion), strengthening Assistance for Government Infrastructure and Social Programs (P80.86 billion), and Revised Armed Forces of the Philippines Modernization Program (P50 billion).

Other items include support to government-owned  and/or -controlled corporations (P6.9 billion), the public health emergency benefits and allowances for healthcare and non-healthcare workers (P6.77 billion), and the program on risk management (P3.6 billion).

Both Marawi Siege Victims Compensation Program and Comprehensive and Adequate Insurance Protection of Strategically Important Government Assets and Interest have a proposed allotment of P2 billion.

The Fiscal Support Arrearages for Comprehensive Automotive Resurgence Strategy Program will receive P333.5 million.

The government earmarked P210.58 million for the refund of the service development fee for the right to develop the Nampeidai Property in Tokyo, Japan.

Ms. Pangandaman said a bill setting a limit for unprogrammed appropriations should be passed by Congress.

Budget Assistant Secretary Mary Anne Z. Dela Vega said last year, the bicameral conference committee transferred certain agency line items to the unprogrammed appropriations.

The DBM allotted P158.665 billion for standby funds for this year, but lawmakers increased it to P363.42 this year.

At the same briefing, Ms. Pangandaman said the government will launch this month a new program “Budget ng Bayan Monitor” that would review the performance of each department or agency.

This will include the budget and amount they spent, as the DBM aims to monitor the status of various government projects.

The DBM is also set to launch the Project Digital Information for Monitoring and Evaluation on Aug. 20. It will tap satellite imaging and geo-tagging systems to monitor priority infrastructure projects and other large-scale programs. — A.R.A.Inosante