DBM chief: Unprogrammed funds key to sustainable gov’t social protection program

The Department of Budget and Management (DBM) has approved the release of an additional P5 billion to the Assistance to Individuals in Crisis Situations program, a move expected to benefit an estimated 411,188 needy Filipinos from October until the end of the year.

The allocation, approved at the direction of President Ferdinand Marcos Jr., is intended to cover a budget shortfall in the Department of Social Welfare and Development's Protective Services for Individuals and Families in Difficult Circumstances component.

DBM Secretary Amenah F. Pangandaman said the funds are chargeable against the Fiscal Year 2025 General Appropriations Act.

"This latest fund release underscores the importance of unprogrammed appropriations as fiscal buffers that enable the government to respond swiftly to social and humanitarian emergencies," Pangandaman said in a statement.

She stressed that unprogrammed funds are vital for rapid disaster response, serving as the government’s "financial lifeline" during calamities. Pangandaman also clarified the nature of the funds.

"Unprogrammed appropriations are not discretionary or secret funds, but standby allocations duly authorized and approved by Congress," the DBM chief explained. "These funds can only be accessed when there are excess or windfall revenues, new revenue measures, or valid loan agreements for foreign-assisted projects."

Pangandaman is scheduled to appear before the Independent Commission for Infrastructure (ICI) on Tuesday to discuss the National Expenditure Program and General Appropriations Act processes.

The ICI invited her to explain the release of unprogrammed funds and to clarify requests and proposals submitted to the DBM by the Department of Public Works and Highways (DPWH)  for inclusion in the National Expenditure Program.

Pangandaman said unprogrammed appropriations typically "serve as fiscal buffers, enabling the government to respond to unforeseen needs or urgent national priorities without breaching the fiscal program approved by Congress."

She added that in normal circumstances, unprogrammed funds support key programs such as assistance to rice farmers, social protection initiatives like the AICS and Food Stamp Program, higher education subsidies, health infrastructure, personnel benefits, renewable energy and national defense modernization. She cited the government’s mobilization of these funds during the Covid-19 pandemic and in 2024 to support crucial projects authorized under the General Appropriations Act.

During the ICI session, the DBM secretary is also expected to clarify the national budget processes — covering preparation, legislation, execution and accountability — which, she noted, do not allow the DBM to participate in so-called "budget insertion."

"The DBM does not have the authority to introduce insertions into the national budget," Pangandaman said. She explained that such insertions, referred to as Congress-Introduced Changes and Adjustments, occur not during the National Expenditure Program preparation but during the Bicameral Conference Committee deliberations between the two houses of Congress.

Pangandaman reiterated that the Constitution grants Congress the "power of the purse."

"Once the President submits the proposed National Expenditure Program to Congress, the Executive’s role — through the DBM — is limited to explaining, clarifying and defending the proposed allocations," she emphasized. "The authority to introduce, realign or amend items rests solely with the legislative branch."