DBM urges limit on unprogrammed appropriations

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February 26, 2026 | 3:55pm

MANILA, Philippines — The Department of Budget and Management (DBM) is seeking a cap on unprogrammed appropriations (UA) in the national budget following heavy allegations of the funds being used for corruption. 

In a statement released through the Palace on Thursday, February 29, the DBM said that it was drafting a Philippine budgeting code that will provide clearer parameters in the implementation of the UA. 

“As a matter of fiscal policy direction, the DBM’s position is to adopt a more prudent and disciplined approach by setting the level of unprogrammed appropriations at a rate lower than five percent of the total national budget based on historical data and fiscal trends. The precise threshold, however, will remain subject to further deliberation and the President’s approval in the context of the proposed budgeting code,” the DBM said, as quoted by Palace Press Officer Claire Castro. 

A central policy would ensure that the UA will be confined to clearly defined purposes. 

The draft will be reviewed by the economic team, then by the Executive Secretary, before being turned over to President Ferdinand Marcos Jr. 

Calls to abolish the UA completely have been rampant ever since the flood control scam made headlines. 

Several officials and contractors were accused of using the UA as a means of corruption. 

The UA itself is not an existing funding source, as it will only be activated once the government has excess money. 

Projects that do not have an allotted budget for it are often relegated to the UA, despite some of these projects being listed as a priority by the administration.