DBM to defend P588.1B NEP, cites no irregularity in allocating unprogrammed funds

MANILA, Philippines — The Department of Budget Management has maintained there is no irregularity in its proposed P588.1 billion unprogrammed funds under the 2023 national expenditure program (NEP).

The DBM vowed to defend the budget as lawmakers questioned the proposal, which is more than double the current year’s P251.7 billion unprogrammed fund.

The budget department said details of these unprogrammed appropriations (UA) are available for scrutiny by the public and Congress.

The P588.1 billion UA includes funding for the support of Infrastructure Projects and Social Programs (P149.6 Billion); budgetary support to Government-Owned and/or Controlled Corporations (P20.6 Billion); and Public Health Emergency Benefits and Allowances for Health and Non-Health Care Workers (P18.9 Billion).

The biggest allocation, however, goes to support Foreign-Assisted Projects (P380 Billion). Of that budget,  P378.2 Billion will go to the Department of Transportation as part of its loan proceeds requirements. The remaining P2.2 Billion will go to the Department of Social Welfare and Development.

The DBM said that if the loan proceeds are removed, only approximately P200 billion or 4 percent is considered “unprogrammed” and will only be triggered for release upon the generation of additional revenues.

“The approach that the DBM has adopted is consistent with what occurred in 2022, when, subject to the collective wisdom of the legislature, all loan proceeds under the DOTr were transferred to the unprogrammed appropriation, due to their history of low absorptive capacity insofar as loan proceeds is concerned,” the budget department said in its statement.

“The approach that the DBM has adopted is consistent with what occurred in 2022, when, subject to the collective wisdom of the legislature, all loan proceeds under the DOTr were transferred to the unprogrammed appropriation, due to their history of low absorptive capacity insofar as loan proceeds is concerned.

The same measure has been adopted in so far as the 2023 levels are concerned. With a 4.9% increase in appropriations, year on year, the over P300 billion in loan proceeds under DOTr was transferred to the UA so that other expenditure items may be accommodated.”

Deputy Speaker Isidro Ungab earlier said the DBM should explain the P588.1 Billion in unprogrammed appropriations under the proposed P5.268 trillion 2023 national budget.

Ungab said the unprogrammed appropriations cover 16 percent of the total proposed expenditures in the programmed portion of the proposed national budget for next year, which is a “sharp turn” from the 2 percent to 5 percent in previous years.

Deputy Speaker Ralph Recto, for his part, said the unprogrammed funds worth half a trillion pesos should be itemized.

He said among the “unclear and undefined” purposes in the 2023 Unprogrammed Appropriations is the Support to Foreign Assisted Projects with a proposed P380.6 billion and the P149.7 billion for Support for Infrastructure Projects and Social Programs.

/MUF/abc