DBM clarifies: Unprogrammed appropriations are only standby funds

THE Department of Budget and Management (DBM) clarified today that the unprogrammed appropriations in the Fiscal Year 2024 national budget are only standby funds.

In a statement, the DBM emphasized that “unprogrammed appropriations are standby appropriations, outside the approved government fiscal program, which serve as an important tool for the government to address unforeseen expenditures and prioritize essential programs and projects.”

It is not included in the P5.7676 trillion FY 2024 National Budget by Appropriation Source, given that it refers to standby appropriations that are also proposed for legislation and to be authorized by Congress,” the statement added.

The agency said that the unprogrammed appropriations are not allocated automatically and can only be released once several funding conditions are met. Among these include when the government, through the Bureau of Treasury, is able to collect excess revenue in the total tax revenues or any of the identified non-tax revenue sources from its revenue target, or new revenue from new tax or non-tax sources or should foreign or approved financial loans/grants proceeds are realized.

Should there be new or excess revenues that may trigger the availability of the unprogrammed funds, government agencies are required to submit the necessary documentary requirements before access to the standby funds is given. Such conditions ensure that spending stays within allowable limits,” the statement furthered.

In the statement, the DBM further noted that pursuant to the constitutional provision under Section 29 (1), Article VI, it is prescribed that “No money shall be paid out of the Treasury except in pursuance of an appropriation made by law.” “It is therefore clear that the deliberation and approval of the limits of any appropriations is within the purview of the legislature.”

The DBM also assured that public that it shall work within its approved fiscal program regardless of any petition or challenge.

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