Cut unprogrammed funds, gov't told

A former Finance secretary is urging incumbent officials to cut unprogrammed appropriations to better focus on essential social and infrastructure projects within the programmed budget. 

Former Finance secretary Margarito Teves said on Thursday that government regulators need to prioritize key programs instead of examining the budgets of government-owned and controlled corporations for excess funds to finance unprogrammed appropriations.

Teves highlighted that unprogrammed appropriations for 2023 and 2024 reached P807.2 billion and P731.4 billion, representing 15 percent and 13 percent of the national government budget, respectively. 

He noted that the number was more than double the average of 5 percent from 2010 to 2022.

While acknowledging that some unprogrammed appropriations are necessary for unforeseen expenses, he cautioned against moving crucial projects into this category. 

"Moving crucial social and infrastructure projects from programmed to unprogrammed is not only questionable but also undermines the government’s commitment to inclusive development and fiscal prudence," he said.

Teves emphasized that priority items under unprogrammed appropriations, such as upgrading health facilities and constructing housing, could lead to delays in implementation due to uncertain funding sources. 

Thus, he suggested that the Office of the President convene the Legislative-Executive Development Advisory Council to align on priority programs before the proposed 2025 national government budget is deliberated in Congress.

To improve fund utilization, Teves also recommended that the Development Budget Coordination Committee regularly monitor government spending, particularly in agencies that historically underutilized their budgets. 

"Allotted public funds must always be spent to translate into tangible programs and projects that improve the welfare of Filipinos," he said.

Teves was among several former DOF secretaries who supported the use of idle GOCC funds to finance crucial government projects in health, education, social services, and infrastructure.