DBM clarifies: P21B subsidy not fresh funds

As the order for the release of P21.47 billion by President Ferdinand Marcos Jr. to sustain infrastructure projects, protect jobs, and cushion Filipinos from the impact of global economic pressures, including rising oil prices, was marred with fresh doubts, the Department of Budget and Management elucidated that the reported fund releases are not new but part of unplanned expenditures that came from the 2025 General Approriations Act.

By the order of President Marcos Jr., the DBM is set to release various funds, namely P2.49 billion for the Department of Transportation (DOTr) for the Fuel Subsidy Program, providing direct relief to drivers and operators grappling with rising fuel costs.

"As global oil prices climb, the subsidy helps drivers stay on the road without passing on the full burden to commuters—keeping fares stable and transport accessible for millions of Filipinos," DBM Acting Secretary Rolando Toledo said.

Meanwhile, P18.65 billion was released to the Department of Public Works and Highways (DPWH) to sustain infrastructure projects nationwide, ensuring continued employment, safer roads, and unhampered economic activity.

Further, an additional P324.36 million was released to the DPWH to settle prior obligations for foreign-assisted infrastructure projects, ensuring their timely completion.

In its clafication on Friday, DBM said the P21.47 billion is based on existing appropriations and previously approved allotments, in line with sound public financial management principles.

“To be precise, these are already Notice of Cash Allocations (NCAs)—meaning, these represent the cash requirements of projects with valid appropriations and allotments, primarily from FY 2025,” the DBM clarified.

For the fuel subsidy, the DBM said this comes from existing unobligated allotments under last year’s budget.

“It is important to note that the fuel subsidy program is trigger-based—it can only be implemented once specific conditions are met, particularly when the average price of crude oil in the world market exceeds $80 per barrel,” the DBM said.

Further, the department said that in 2025, the trigger was not reached, which is why the funds remained unused.

However, with the recent increase in global oil prices, DBM maintained that the condition has now been satisfied.

“As such, the DBM proceeded with the release under the rules on continuing appropriations, ensuring that the funds are utilized for their intended purpose at the appropriate time,” the DBM said.

Corresponds to existing infra appropriations

For the infrastructure projects of the DPWH, the DBM said the amounts released likewise correspond to existing appropriations, particularly for accounts payable—that is, payments for completed and delivered goods and services, as well as current cash requirements for ongoing projects.

“These are obligations that have already been incurred and simply require the corresponding cash cover. In all cases, releases were made only after compliance with all requirements, and in accordance with established budgeting, cash programming, and disbursement rules,” the DBM stressed.

“In sum, these are fully funded, legally authorized, and properly timed releases—ensuring that government can respond to current economic conditions, sustain infrastructure momentum, and deliver needed support to the public, without breaching fiscal discipline,” the DBM added. (RAFFY AYENG)