DBM Proposes PHP111.984 Billion in Unprogrammed Funds for 2027, Lowest Since 2019

Manila: The proposed PHP111.984 billion in unprogrammed appropriations (UA) for 2027 is the lowest in nominal terms since 2019, acting Department of Budget and Management (DBM) Secretary Kim Robert de Leon announced Friday. Speaking at an economic forum at the Bangko Sentral ng Pilipinas Assembly Hall, De Leon emphasized that the proposed UA accounts for only 1.6 percent of the total expenditure program for 2027.

According to Philippines News Agency, De Leon highlighted the significance of the proposed UA, stating that it marks the lowest UA at the National Expenditure Program (NEP) nominal terms since 2019, and the smallest UA to total expenditure program ratio since 1991. The proposed UA aims to restore the fund balance remitted by the Philippine Deposit Insurance Corporation in 2024 and provide funding for foreign-assisted projects, adhering to conditions set by law.

De Leon clarified that unprogrammed funds do not imply unlimited spending authority for the government. He stressed, "Unprogrammed does not mean unaccounted for. It is not a blank check, and it's certainly not an unlimited spending authority." He explained that UA has specific purposes and well-defined triggers that must be fulfilled before funds can be released.

He also underscored the importance of maintaining budget discipline throughout the budget process, with an emphasis on transparency, integrity, and accountability even after the national budget's approval. "Transparency should not begin only when there is already a scandal. It must be built into the system before every single peso is spent," De Leon stated.

The government is implementing a new Government Procurement Act to enhance competition, transparency, and accountability through open contracting, public and civil society monitoring, video recording of procurement proceedings, and disclosure of beneficial owners of companies participating in government bidding, De Leon noted.

Additionally, the DBM is strengthening digital systems with its Centralized Open Monitoring Platform for Appropriations and Spending Statistics, which allows citizens to track budget information from the National Expenditure Program and the General Appropriations Act through allotments, obligations, releases, and disbursements.

De Leon concluded by stating that government transactions remain subject to the independent audit authority of the Commission on Audit and emphasized the expansion of opportunities for citizen participation in the budget formulation, implementation, and monitoring through the Philippine Open Government Partnership.