MANILA, Philippines — A bill that seeks to amend Republic Act No. 11936 or the 2023 General Appropriations Act (GAA) to provide additional criteria in terms of the availment of unprogrammed funds has been approved by the House on second reading.
House Bill (HB) No. 9153, authored by House committee on ways and means chairperson and Albay 2nd District Rep. Joey Salceda, was approved via viva voce, or voice voting, during the session on Tuesday.
If enacted, an additional item under the 2023 GAA’s Section 1 of Special Provisions would be placed that would determine when the government can use its unprogrammed funds or appropriations that are not funded yet and may only be released when government revenue exceeds targets.
Section 1 of the Special Provisions would now have an additional item stating that the unprogrammed funds authorized by R.A. No. 11936 may be used when “funds of government-owned or -controlled corporations determined to be in excess of their current administrative and operational expenses, benefit obligations, or reserve requirements.”
According to Salceda’s explanatory note, passing the bill is important in ensuring that idle funds of government-owned and controlled corporations (GOCCs) are tapped and used for urgent services.
“In order to maximize the idle funds of the GOCCs and further help the national government, this bill proposes that the same be used to fund the unprogrammed appropriations. The funds of GOCCs determined to be in excess of their current administrative and operational expenses, benefit obligations, or reserve requirements may be used to implement the vital purposes under the unprogrammed appropriations,” Salceda said.
“It is an accepted fact that certain government corporations have funds far exceeding their current administrative and operational expenses, benefit obligations, and/or reserve requirements. These funds lie idle in the banks or are invested in time deposits and other securities with other government and non-government financial institutions and results in the inefficient use of national government resources,” he added.
According to the Department of Budget and Management (DBM) in August 2022 — when the 2023 GAA was still being deliberated — the 2023 budget has P588 billion in unprogrammed funds, which is supposedly set aside for unforeseen events.
READ: P588-B unprogrammed funds in 2023 budget for unforeseen, emergency events — DBM