Govt ready to defend constitutionality of unprogrammed funds in 2024 budget

MANILA, Philippines: The government is prepared to defend the constitutionality of the unprogrammed funds in the P5.768-trillion national budget for 2024, Presidential Communications Secretary Cheloy Garafil said.

This, after Albay Rep. Edcel Lagman and other minority lawmakers urged the Supreme Court (SC) to "nullify" and prevent the government from utilizing the P449.5 billion unprogrammed funds in the 2024 General Appropriations Act (GAA).

Garafil said the Executive Department would "answer accordingly if required by the Supreme Court," Garafil said in a statement.

In their petition, the lawmakers said President Ferdinand Marcos Jr.'s National Expenditure Program (NEP) proposed a cap of only P281,908.056,000 for unprogrammed appropriations, a ceiling that Congress is explicitly prohibited from surpassing under Section 25 (1) of Article VI of the 1987 Constitution.

The lawmakers said this provision unequivocally states, "The Congress may not increase the appropriations recommended by the President for the operation of the government as specified in the budget."

The petitioners said the constitutional prohibition extends to both programmed and unprogrammed appropriations, restricting Congress from exceeding the total proposed by the President in the NEP.

They also said unprogrammed appropriations are integral components of the total national expenditures.

"The excess of P449.5 billion over the P289.1 billion proposed by the President for unprogrammed appropriations is an unconstitutional act of the Congress that is tainted with grave abuse of discretion amounting to a lack or excess of congressional jurisdiction, and perforce must be nullified," said the lawmakers.

Congress raised the unprogrammed appropriations under the 2024 GAA from the proposed P281.9 billion to P731.5 billion after the bicameral conference.

Earlier this month, the Department of Budget and Management (DBM) said that the unprogrammed funds in the 2024 national budget are merely "standby funds."

"Allow us to emphasize 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," the DBM said in a previous statement.

The DBM said the unprogrammed funds are not included in next year's budget "by appropriation source," given that these are "standby appropriations that are also proposed for legislation and to be authorized by Congress."

"Unprogrammed appropriations of the FY (fiscal year) 2024 budget are not automatically allocated, and can only be released if several funding conditions are met, such as 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," it said.

"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 DBM added.

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