Leonen flags P164B in unprogrammed funds from PDIC, PhilHealth

Supreme Court (SC) Senior Associate Justice Marvic Leonen on Tuesday revealed that a large portion of the government’s unprogrammed appropriations under the 2024 national budget was sourced from excess funds of state-run corporations, particularly the Philippine Deposit Insurance Corporation (PDIC) and the Philippine Health Insurance Corporation (PhilHealth).

During the resumption of oral arguments before the SC on petitions challenging the legality of unprogrammed funds and special accounts in recent national budgets, Leonen said more than P74 billion came from PDIC, while around P90 billion was sourced from PhilHealth in 2024.

Leonen raised the figures as he interpellated Solicitor General Darlene Marie Berberabe, pressing the government on the origins and treatment of the controversial funds embedded in the General Appropriations Act (GAA).

Berberabe, however, clarified that similar funding sources are not indicated in the 2025 and 2026 GAAs. She also noted a shift in how unprogrammed appropriations are being financed in subsequent budgets.

The solicitor general also distanced President Ferdinand Marcos Jr. from the release of such funds, arguing that no prior approval from the chief executive is required.

She explained that the GAA itself grants authority to the Department of Budget and Management (DBM) secretary to approve and implement releases under unprogrammed appropriations.

Berberabe noted that during the preparation of the 2024 and 2025 national budgets, the DBM was led by former Secretary Amenah Pangandaman.

The High Court is currently tackling consolidated petitions questioning the constitutionality and transparency of unprogrammed appropriations, which critics argue may allow discretionary spending outside the regular appropriations framework.