Cendaña urges zeroing out unprogrammed appropriations in 2027 budget
The government should consider eliminating the budget allocation for unprogrammed appropriations (UA) in the proposed 2027 national budget amid concerns over potential abuse, Akbayan Party-list Rep. Perci Cendaña said.
Cendaña renewed his call to reduce the administration’s reliance on UA, citing persistent concerns that the funds could be abused by corrupt public officials.
“Well, in the previous year we really criticized this unprogrammed appropriation. In fact, last year, I called for unprogrammed appropriations to be zeroed out because we saw it as a source of corruption,” Cendaña said in a radio interview.
His remarks came days after the Supreme Court ruled that provisions of the 2024 and 2025 national budgets were unconstitutional, including those involving substantial unprogrammed funds.
For the 2024 budget, the high court found that Congress’ decision to increase unprogrammed appropriations by ₱449.5 billion exceeded the total recommended appropriations of the President and resulted in the creation of an “artificial fiscal space.”
The Supreme Court clarified that unprogrammed appropriations were not inherently unconstitutional, as they were intended to serve as standby funds that the government could tap during crises.
Cendaña, however, said Congress must review how the funds were spent in previous budget cycles, noting that many projects listed under the allocation lacked clear details.
He described it as “bad housekeeping” if Congress continued to place most projects under unprogrammed appropriations, particularly foreign-assisted projects (FAP) and other strategic initiatives.
“In the meantime, while we absorb the Supreme Court decisions, my suggestion is really to zero out the UA and to really study what policies and guidelines should govern and apply the Supreme Court decisions going into the future,” he said.
Cendaña also expressed concern over the House of Representatives’ decision to reduce the allocation for FAP in the 2027 House General Appropriations Bill, warning that the cut could disrupt economic activity.
He explained that FAP covers strategic government projects financed through foreign loans arranged on a year-to-year basis.
Even when projects lack funding or have yet to be implemented, the government still incurs interest payments and commitment fees on its foreign loans, he said.
“It’s a double whammy because the public are stripped of the services that they need, they pay interest for the debt, and then there are also commitment fees. The public are really robbed from that type of situation,” Cendaña said.
The lawmaker stressed the need for coordination among the Senate, the Department of Public Works and Highways, and budget watchdog advocates to address issues he identified in the House version of the budget, which has been transmitted to the Senate.