BBM backs 3% cap for unprogrammed funds

President Ferdinand Marcos Jr. has expressed support for the Department of Budget and Management’s plan to lower the ceiling on unprogrammed appropriations (UAs) to as low as 3 percent of the national budget, Malacañang said Thursday.

Palace Press Officer Claire Castro explained that the DBM aims to adopt a more disciplined fiscal approach by reducing UA levels below the historical 5 percent benchmark, based on past budget trends and data.

Castro noted that the DBM is drafting the proposed Philippine Budgeting Code, which seeks to institutionalize key fiscal reforms, including clear guidelines on the release, scope, and purpose 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 said during a Palace briefing.

“The draft measure will be submitted for review by the economic team, the Executive Secretary, and ultimately the President,” Castro added, emphasizing that the precise threshold will still be finalized through interagency consultations and presidential approval.

Acting DBM Secretary Rolando Toledo earlier pushed for the UA level to be set at 3 percent of the total budget to strengthen transparency and accountability, citing previous controversies over unprogrammed funds.

DBM data showed a steady decline in UA allocations, dropping to ₱150.9 billion in 2026 from ₱363.4 billion in 2025, and well below ₱731.4 billion in 2024 and ₱807.2 billion in 2023.