MANILA: The unprogrammed funds in the PHP5.768-trillion national budget for 2024 are merely ‘standby funds,’ the Department of Budget and Management (DBM) said on Wednesday.
‘We write to shed light on concerns regarding the unprogrammed appropriations of the fiscal year (FY) 2024 national budget,’ the DBM said.
‘Allow us to emphasize that unprogrammed appropriations are standby appropriations, outside the approved government fiscal program, which serve as an important tool for the government to address unforeseen expenditures and prioritize essential programs and projects,’ it added.
The statement was issued after Senate Minority Leader Aquilino Pimentel III bared his plan to file a petition before the Supreme Court to address the alleged ‘unconstitutional’ PHP450 billion increase in unprogrammed funds under the 2024 national budget.
Pimentel questioned the Congress’ move to hike the unprogrammed funds under the 2024 budget from the proposed PHP281.9 billion to PHP731.4 billion after the bicameral confere
nce.
The DBM said the unprogrammed funds are not included in next year’s budget ‘by appropriation source,” given that these are ‘standby appropriations that are also proposed for legislation and to be authorized by Congress.”
‘Unprogrammed appropriations of the FY (fiscal year) 2024 budget are not automatically allocated, and can only be released if several funding conditions are met, such as when the government, through the Bureau of Treasury, is able to collect excess revenue in the total tax revenues or any of the identified non-tax revenue sources from its revenue target, or new revenue from new tax or non-tax sources, or should foreign or approved financial loans/grants proceeds are realized,’ it said.
‘Should there be new or excess revenues that may trigger the availability of the unprogrammed funds, government agencies are required to submit the necessary documentary requirements before access to the standby funds is given. Such conditions ensure that spending stays within allowable limits,’ the DBM
added.
The DBM also noted that pursuant to the constitutional provision under Section 29 (1), Article VI, “No money shall be paid out of the Treasury except in pursuance of an appropriation made by law.”
‘It is therefore clear that the deliberation and approval of the limits of any appropriations is within the purview of the legislature. Rest assured that regardless of any petition or challenge, the DBM shall work within our approved fiscal program,’ it said.
In December last year, DBM Secretary Amenah Pangandaman clarified that the unprogrammed funds are distinct from the approved fiscal program and have built-in safeguards to prevent unconstitutional spending.
Pangandaman also stressed that the unprogrammed funds for 2024 would help the government address unforeseen expenditures and prioritize essential programs and projects.
Source: Philippines News Agency