The term “unprogrammed appropriations” has recently made headlines after President Ferdinand “Bongbong” Marcos Jr. signed the law containing the national budget for fiscal year 2025. Here’s a detailed explanation to help everyone, including younger readers, understand this important topic.
What Happened?
President Marcos approved the 2025 General Appropriations Act (GAA) but made significant changes. He vetoed over P195 billion in allocations, including P168 billion designated as unprogrammed appropriations. This decision has raised questions: What exactly are unprogrammed appropriations?
Understanding Unprogrammed Appropriations
According to the Department of Budget and Management (DBM), unprogrammed appropriations are funds set aside as a backup. These funds can only be used if the government:
- Collects more revenue than expected.
- Receives extra grants or foreign loans.
Think of it like a family budget: You might plan to buy a new TV, but only if you get a bonus at work or find extra savings. Unprogrammed appropriations work the same way—they’re for priority projects that depend on available extra funds.
Key Numbers in the 2025 Budget
- The original budget for unprogrammed appropriations was P531.665 billion.
- After the president’s veto, P363.665 billion remains for unprogrammed spending in 2025.
What Lawmakers Say
Senate Minority Leader Aquilino “Koko” Pimentel III praised the reduction in the budget but hoped for an even larger cut to unprogrammed appropriations. He pointed out that these funds should align more closely with the National Expenditure Program proposed by the Executive Department.
A Look at Past Budgets
In 2024, unprogrammed appropriations were a controversial topic. Congress increased these funds by P450 billion, pushing the total budget to over P5.768 trillion, much higher than the P281.9 billion initially proposed for unprogrammed spending. This led lawmakers to question the legality of the adjustments.
In December 2023, some House of Representatives members asked the Supreme Court to nullify the excess unprogrammed appropriations included in the 2024 GAA.
What’s Next?
For 2025, Senate Finance Committee Chairperson Sen. Grace Poe explained that unprogrammed appropriations were set lower at P158.7 billion in the proposed budget, reflecting an expected decline in excess revenue next year. Despite these adjustments, unprogrammed funds remain a significant part of the national budget discussion.
Why Does This Matter?
Unprogrammed appropriations are crucial for flexibility in managing the national budget, but they also require transparency to ensure funds are used wisely. Understanding these funds helps citizens hold the government accountable and ensures that national priorities align with available resources.
