Marcos Backs Plan to Cap 'Unprogrammed Funds' at 3% — A Move to Stop the Budget From Becoming a Government Slush Fund

President Ferdinand Marcos Jr. has given his blessing to a Department of Budget and Management proposal that could fundamentally change how the national budget works: capping unprogrammed appropriations at just 3% of the total budget. Palace Press Officer Claire Castro confirmed the President's support on Thursday.

Unprogrammed appropriations — or UAs — have long been a controversial feature of Philippine budgeting. These are funds included in the national budget but can only be released when certain revenue conditions are met. Critics have called them a backdoor mechanism for discretionary spending, since they can balloon to significant amounts without the same scrutiny as regular appropriations.

The DBM said the reform is part of a proposed Philippine Budgeting Code that aims to 'ensure that unprogrammed appropriations are confined to a limited and clearly defined purpose' — essentially preventing them from being used as a broad or discretionary funding mechanism.

Currently, the DBM's policy direction is to set UAs at 'a rate lower than five percent of the total national budget based on historical data and fiscal trends.' The 3% cap would be significantly stricter. However, the department noted that the 'precise threshold will remain subject to further deliberation and the President's approval.'

The draft measure will be submitted for review by the President, the economic team, and the Executive Secretary. If enacted, this would be one of the most significant fiscal reforms of the Marcos administration — directly addressing concerns about budget transparency that fueled the massive anti-corruption protests in recent months. Abangan kung matutuloy.

Source: Manila Bulletin