President Ferdinand “Bongbong” Marcos Jr. has expressed support for the Department of Budget and Management’s (DBM) initiative to reduce the cap on unprogrammed appropriations (UAs) to as low as 3% of the national budget, Malacañang announced Thursday.
Communications Undersecretary and Palace Press Officer Claire Castro explained that the DBM aims to enforce a more cautious fiscal policy by setting the UA level below 5% of the total budget, guided by historical data and fiscal trends.
Castro said the DBM is drafting the proposed Philippine Budgeting Code, which seeks to institutionalize fiscal reforms, including clearer rules on the level, scope, and release conditions of unprogrammed funds.
“A central policy intention under the proposed reform is to ensure that unprogrammed appropriations are confined to a limited and clearly defined purpose, thereby preventing its use as a broad or discretionary funding mechanism and enforcing fiscal discipline,” she noted.
The draft measure will undergo review by the economic team, the Executive Secretary, and ultimately the President.
Castro emphasized that the proposal remains in development and subject to interagency consultations, with the final threshold to be determined under the Budgeting Code.
On Tuesday, Acting Budget Secretary Rolando Toledo advocated for reducing the UA level to 3% of the total budget to improve transparency and accountability.
DBM data show UA allocations have been declining: ₱150.9 billion in 2026, down from ₱363.4 billion in 2025, ₱731.4 billion in 2024, and ₱807.2 billion in 2023.