Sunday, September 21, 2025

Unprogrammed funds in focus 

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THE leadership of the House of Representatives, along with the economic team of President Marcos Jr., took turns last Monday in praising the P6.352-trillion proposed national budget, saying it is THE single document that will propel the nation towards economic growth that will redound to a better life for Filipinos.

Speaker Martin Romualdez said the national budget aims to sustain the country’s economic growth, calling it the “the best tool we have to ensure that all our people, especially the poor, feel the tangible benefits of our economic achievements.”

He said by prioritizing programs that uplift the most vulnerable and provide essential services, the budget “serves as a bridge, connecting our economic successes with the daily lives of our people.”

‘The Supreme Court should therefore rule as soon as possible on this petition as the process of enacting the national budget is under way.’

Rep. Zaldy Co, chair of the appropriations committee, said, “The proposed national budget is more than just a financial document. It reflects our priorities, commitments and vision for the future.”

Finance Secretary Ralph Recto said government is on-track in achieving its targets under the refined Medium-Term Fiscal Program that “reduces our deficit and debt gradually in a realistic manner, while creating more jobs, increasing our people’s incomes, and decreasing poverty in the process.”

The exchange of pleasant words between the legislators and the executive officials was, however, marred by a party-list lawmaker who warned that the unprogrammed appropriations in this year’s budget as well as last year’s are being utilized as “super presidential pork barrel.”

The Development Budget Coordination Committee composed of Recto, Budget Secretary Amenah Pangandaman, Planning Secretary Arsenio Balisacan, and Bangko Sentral Gov. Eli Remolona Jr. would have been ready to answer this quite controversial charge but the Speaker jumped the gun on them, taking the floor to explain and debunk Rep. France Castro (ACT Teachers).

Castro warned that the P158.6 billion unprogrammed funds under the 2025 national budget may balloon again once the budget reaches the bicameral conference committee.

“We are seeing a dangerous trend in the 2024 national budget where unprogrammed appropriations have ballooned to P731.4 billion, an increase of P449.5 billion from the original proposal,” she said. “This massive increase gives the President unprecedented discretionary power over public funds, effectively creating a presidential super pork barrel.”

Unlike regular items in the national budget, unprogrammed appropriations become available only if funding conditions are met, such as when the government is able to raise additional tax or non-tax revenues. These funds are released after a certification from the budget department and the National Treasury that there are surplus revenues.

Castro explained that unprogrammed appropriations allow the executive branch to reallocate funds from government-owned and controlled corporations like PhilHealth, GSIS, and SSS to various projects, at the President’s discretion. This mechanism legally allows the Marcos administration to siphon off funds meant for public services and redirect them to pet projects without approval from Congress.

Defending the House and the Palace, Speaker Romualdez said unprogrammed funds cannot be considered “pork” because pork barrel funds are defined as budgetary items that are changed even after the annual national budget has already been enacted.

“Well, I think if we’ll look at the definition, there is really no pork because that contemplates on the amendments or post-enactment of the budget where the allocations are being changed,” he said.

Out of respect for the Supreme Court, the Speaker said, they are deferring further comment on the issues raised by Castro as there are pending petitions before the High Tribunal challenging the use of unprogrammed funds.

Last week, petitioners led by Senate minority leader Aquilino Pimentel III asked the High Court to issue a temporary restraining order against Department of Finance Circular No. 003.2024 on the transfer of unused PhilHealth funds for “unprogrammed appropriations.”

The Supreme Court should therefore rule as soon as possible on this petition as the process of enacting the national budget is under way.

 

 

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