Congressional insertions in 2025 budget require SARO before fund release

Budget Secretary Amenah Pangandaman defended Wednesday the recently signed P6.326-trillion national budget for 2025, which contained nearly P800 billion worth of insertions or adjustments introduced by lawmakers.

At the Kapihan sa Manila Bay forum, Pangandman cited what she described as an "overlooked" detail in this year's General Appropriations Act (GAA), which is the Section 6 of the veto message issued by President Ferdinand "Bongbong" Marcos Jr.

Pangandaman said that in the previous national budgets, congressional insertions could be released "as is, unless there's a conditional provision."

"But for the 2025 budget, because of Section 6, 'yung 'Increases in Appropriations and New Budgetary Items,' ito po ay worth P783 billion na Projects, Activities, and Programs (PAPs) na naka-withhold kumbaga," she added.

(But for the 2025 budget, because of Section 6, the 'Increases in Appropriations and New Budgetary Items' worth P783 billion of Projects, Activities, and Programs (PAPs) are effectively withheld.)

The Budget chief said all congressional insertions in the 2025 GAA "will require a Special Allotment Release Order (SARO) before funds can be disbursed."

Pangandaman said that requiring a SARO "serves as an added safeguard to prevent misuse of the budget, ensuring that increases or new items introduced by Congress align with the government's cash programming, adhere to prudent fiscal management, secure approval from the President, and comply with budget rules and guidelines."

She said the DBM would also require agencies to submit updated performance targets so that funds can be released.

Out of the P783 billion worth of PAPs, P26 billion was directly vetoed by the President, resulting in a net amount of P757 billion for the issuance of SARO.

The DBM said that P757 billion budget adjustments are now subject to a process called FISARO or "For Issuance of SARO."

Under Budget rules, a SARO will only be released once agencies meet the necessary requirements and secure approvals from the Executive Secretary and the Office of the President.

The DBM said the rule ensures that government's spending remains aligned with its priorities and fiscal goals.

Pangandaman said the budgetary process supports transparency, fiscal discipline, and the efficient use of public funds.

On December 30, 2024, Marcos signed the P6.326-trillion GAA for FY 2025.

The President, in signing the 2025 GAA, directly vetoed over P194 billion worth of line items that are not consistent with his administration's priorities, including some programs of the Department of Public Works and Highways (DPWH). — VDV, GMA Integrated News