Safeguards already in place for 2025 unprogrammed funds — DBM

Budget Secretary Amenah Pangandaman said on Monday that measures are already in place to prevent misuse of the unprogrammed appropriations fund for the fiscal year 2025, amounting to more than P150 billion.

In a press briefing, Pangandaman said the unprogrammed appropriations fund for the fiscal year 2025 is at P158.67 billion, lower than the P281.91 billion this year.

Unprogrammed funds serve as reserve resources the government can access in response to unexpected situations.

According to the Department of Budget and Management (DBM), the idea of unprogrammed funds was established over 40 years ago and has been maintained by subsequent administrations. These funds can be used during emergencies and unforeseen events.

"It's definitely lower than the general appropriations act (GAA). We strictly adhere to what we usually do here in DBM," Pangandaman said.

She further elaborated on the allocation process, emphasizing that projects pending approval by the National Economic and Development Authority (NEDA) as of 31 March 2024, are placed under unprogrammed appropriations.

"We haven't put it in yet because there's no approval. So we put it in the unprogrammed appropriations," Pangandaman said.

Pangandaman reassured the public that robust safeguards are in place, particularly for the contingent fund.

When asked about the amount allocated for the contingent fund, Pangandaman disclosed that it remains consistent with previous years at P13 billion. 

Pangandaman said the contingent fund is strictly regulated and can only be utilized for specific urgent needs.

These include government legal obligations with final decisions from authorities, and requirements of newly created agencies, and it cannot be used for confidential intelligence funds for non-security agencies unless the president certifies its necessity. 

Additionally, the contingent fund can be allocated for the purchase or improvement of vehicles, ensuring that such expenditures are justified and necessary.