The Department of Budget and Management (DBM) on Thursday defended the unprogrammed appropriations (UA) in the proposed 2026 General Appropriations Act (GAA), saying these are “constitutional [and] clearly defined.”
While acknowledging the right of individuals and officials to seek legal remedies, the DBM stressed that the legality of unprogrammed funds has already been settled by the Supreme Court.
The DBM cited the Belgica vs. Executive Secretary ruling dated Oct. 8, 2019, which “categorically ruled that the appropriation for the Unprogrammed Fund is constitutional.”
“The Court clarified that the Unprogrammed Appropriations are not a prohibited lump-sum fund, because they are accompanied by an annex that specifies the public purposes and corresponding amounts for which the funds may be used. As such, the UA complies with the constitutional requirement that appropriations must have a discernible purpose,” the DBM said.
“Taken together, Supreme Court jurisprudence and the design of the FY 2026 GAA demonstrate that the Unprogrammed Appropriations are constitutional, clearly defined, and now subject to even tighter fiscal discipline and safeguards,” it added.
The DBM reiterated its commitment to upholding the Constitution, promoting responsible public spending, and implementing the national budget with transparency, integrity, and accountability.
It explained that UA function as standby funds, sourced only from excess or windfall revenues, and can be released strictly after meeting specific fiscal conditions and validation requirements—an approach already upheld by the SC.
“This design, according to the Court, is a legitimate budgeting mechanism that allows fiscal flexibility while preserving Congressional control over public funds,” the DBM said.
The department also pointed out that UA in the 2026 GAA have been significantly reduced to P150.9 billion, down from P363.4 billion in 2025, and are “well below levels recorded during the pandemic years.”
Unprogrammed appropriations peaked in 2023 at P807.2 billion, compared with P251.6 billion in 2022, before being cut to P731.4 billion in 2024.
Citing President Ferdinand R. Marcos Jr., the DBM emphasized that UA are subject to strict safeguards to prevent misuse or discretionary spending.
“Releases may only be made when fiscal conditions are met and after careful validation,” the DBM said.
“To reinforce this discipline, the President vetoed around P92.5 billion worth of proposed UA items, including budgetary support to GOCCs, unpaid LGU shares from previous years, personnel services requirements, industry support programs, insurance for government assets, and certain counterpart funding obligations.”
