PBBM backs 3% cap for unprogrammed funds ~ HUMAN RIGHTS PROMOTIONS

Friday, February 27, 2026

PBBM backs 3% cap for unprogrammed funds

Friday, February 27, 2026 Herbert Curia - Promoter No comments

From the Website of PNA
links https://www.pna.gov.ph/articles/1269859

PBBM backs 3% cap for unprogrammed funds

MANILA – President Ferdinand R. Marcos Jr. has expressed support for the Department of Budget and Management’s (DBM) proposal to lower the cap on unprogrammed appropriations (UAs) to as low as 3 percent of the national budget, Malacañang said on Thursday.

Palace Press Officer Claire Castro said the DBM’s fiscal policy direction is to adopt a more prudent and disciplined approach by setting the level of UAs at a rate lower than 5 percent of the total national budget, based on historical data and fiscal trends.

Castro said the DBM is now drafting the proposed Philippine Budgeting Code aimed at institutionalizing key fiscal reforms, including clearer parameters governing the level, scope and conditions for the release of the unprogrammed funds.

“A central policy intention under the proposed reform is to ensure that unprogrammed appropriations are confined to a limited and clearly defined purpose, thereby preventing its use as a broad or discretionary funding mechanism and enforcing fiscal discipline,” she said in a Palace press briefing.

“The draft measure will be submitted for review by the economic team, the Executive Secretary, and ultimately the President.”

Castro said the proposal remains under policy development and interagency consultation.

She added the precise threshold would remain subject to further deliberation and the President's approval in the context of the proposed Budgeting Code.

Acting DBM Secretary Rolando Toledo on Tuesday pushed to cut the UA level to 3 percent of the total national budget to enhance transparency and accountability in budget management.

The proposal was made in light of past controversies surrounding unprogrammed funds.

Data from the DBM showed UA allocations have been steadily declined, falling to PHP150.9 billion in 2026 from PHP363.4 billion in 2025, and far below the PHP731.4 billion in 2024 and PHP807.2 billion in 2023. (PNA)

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