DBM: Unprogrammed appropriations are outside nat’l budget

The Department of Budget and Management (DBM) on Wednesday gave an explanation for the unprogrammed appropriations which it described as "standby appropriations" and emphasized that it exist outside the national budget.

“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,” the DBM said in a statement.

“It is not included in the P5.7676 trillion FY 2024 National Budget by Appropriation Source, given that it refers to standby appropriations that are also proposed for legislation and to be authorized by Congress,” the Budget Department said.

The DBM made the statement to “shed light” on concerns regarding the unprogrammed appropriations after Senate Minority Leader Aquilino “Koko” Pimentel III earlier said that he and another lawmaker will question the constitutionality of the 2024 General Appropriations Act (GAA) before the Supreme Court. 

Pimentel argued that the additional P450 billion to the unprogrammed appropriations made by Congress is unconstitutional as the resulting total national budget would be P6.498 trillion, exceeding the P5.768–trillion level proposed by the President.

The Senate Minority Leader said this violated Article VI, Section 25(1) of the 1987 Constitution, which states that “Congress may not increase the appropriations recommended by the President for the operation of the Government as specified in the budget. The form, content, and manner of preparation of the budget shall be prescribed by law.”

Senator Sonny Angara, however, defended the final version of the budget bill, saying that the constitutional provision only refers to the programmed appropriations or the funds that are specified to fund certain projects.

The DBM, likewise, said “that pursuant to the constitutional provision under Section 29 (1), Article VI, it is prescribed that, ‘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,” the Budget Department said.

For his part, Albay Rep. Joey Salceda said the question on whether or not unprogrammed funds were covered by the constitutional prohibition on increasing appropriations recommended by the President had been discussed in Congress.

Salceda said the Department of Budget and Management (DBM) wrote his office to clarify that unprogrammed appropriations were not part of the fiscal program.

"As such, only the programmed appropriations are subject to the Article VI, Section 25 (1) of the Constitution, or the prohibition against increasing appropriations recommended by the President," Salceda said.

"In short, the DBM said Congress can increase the unprogrammed appropriations as proposed," the Albay representative said.

The DBM, on the other hand, said that unprogrammed appropriations of the 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.

“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,” the DBM said, adding that “such conditions ensure that spending stays within allowable limits.”

“Rest assured that regardless of any petition or challenge, the DBM shall work within our approved fiscal program,” it added. —VAL, GMA Integrated News