By Louise Maureen Simeon, July 9, 2025; The Philippine Star
MANILA, Philippines — The Department of Budget and Management (DBM) has proposed a more than 30-percent reduction in unprogrammed appropriations to P245 billion under next year’s record budget as the government moves to address the deficit.
Based on the 2026 National Expenditure Program (NEP) obtained by The STAR, unprogrammed funds are proposed at P244.89 billion, 32.62 percent lower than the P363.42 billion under the 2025 General Appropriations Act.
The amount is just 3.6 percent of the proposed total expenditures for 2025 at P6.793 trillion, lower than the 5.7 percent share in this year’s budget.
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.
Releasing funds from this would need certification from the Bureau of the Treasury.
Budget Secretary Amenah Pangandaman said the executive department continues to place a limit of just five percent to unprogrammed appropriations from the previous highs of almost 10 percent.
“We just place foreign assisted projects that are not yet approved by the NEDA Board (now Department of Economy, Planning and Development). If there are also social projects that have urgent needs, but it still depends on the fiscal space,” Pangandaman told The STAR.
“We need to address the deficit. Even if there’s additional revenues, the overall financial and health of the budget will be affected,” she said.
Pangandaman is banking on increased government dividends and higher proceeds from privatization next year to fund the unprogrammed appropriations.
Based on the proposal, 40 percent or P97.31 billion of the unprogrammed appropriation will go to foreign-assisted projects. Another 32 percent or P78.36 billion is allotted for government infrastructure and social programs.
Some P40 billion is proposed to fund the revised modernization program of the Armed Forces of the Philippines while the Bangko Sentral ng Pilipinas equity infusion was allocated with P10 billion.
The Marawi Siege Victims Compensation program and the Comprehensive and Adequate Insurance Protection of Strategically Important Government Assets and Interest are both eyed with P2 billion each.
Other items include budgetary support to state-run firms (P6.9 billion), emergency benefits and allowances for health care workers (P6.77 billion), risk management program (P1 billion), fiscal support arrearages for the Comprehensive Automotive Resurgence Strategy program (P333.5 million), refund of the service development fee for the right to develop the Nampeidai property in Japan (P210.58 million) and prior years’ local government units’ shares (P14.62 million).
Under this year’s controversial P6.326-trillion national budget, P363.24 billion has been earmarked for unprogrammed appropriations. However, only P158.7 billion was proposed by the executive department.
Latest data showed that the DBM has recorded P72.13 billion in unprogrammed appropriations as of the first semester.
The bulk of the amount worth P65.86 billion was allocated to support the foreign-assisted projects of the departments of Agrarian Reform, Finance, Health, Public Works and Highways, Transportation, Metropolitan Manila Development Authority and Philippine Competition Commission.
The remaining P6.27 billion was earmarked to the National Food Authority as a form of budgetary support.
