DBM: Fund releases part of approved budget, not new spending

The Department of Budget and Management (DBM) clarified that recent fund releases flagged in public discussions are neither new nor unplanned expenditures, but part of previously approved appropriations aligned with government budgeting rules.

In a statement, the DBM emphasized that the amounts in question were issued as Notices of Cash Allocations (NCAs), representing cash requirements for projects that already have valid appropriations and allotments—primarily from the 2025 national budget.

“These are fully funded, legally authorized, and properly timed releases—ensuring that government can respond to current economic conditions,” the DBM said, underscoring adherence to sound public financial management principles.

The DBM also addressed concerns surrounding the fuel subsidy program, explaining that the funds came from unobligated allotments under last year’s budget.

The subsidy, it noted, is trigger-based and can only be activated when global oil prices exceed $80 per barrel.

According to the DBM, that threshold was not reached in 2025, leaving the funds unused. However, with recent increases in global oil prices, the condition has now been met, prompting the release of funds under rules governing continuing appropriations.

Meanwhile, disbursements to the Department of Public Works and Highways (DPWH) were clarified as payments for existing obligations, including accounts payable for completed infrastructure projects and funding support for ongoing works.

“These are obligations that have already been incurred and simply require the corresponding cash cover,” the DBM said.

The department added that all fund releases underwent the required verification processes and complied with established budgeting, cash programming, and disbursement regulations.

Amid scrutiny over government spending, the DBM maintained that the releases are “fully funded, legally authorized, and properly timed,” allowing the government to respond to economic conditions, sustain infrastructure development, and deliver targeted assistance while maintaining fiscal discipline.