Unprogrammed appropriation has been used to fund flood control and other infrastructure projects under the Marcos administrationUnprogrammed appropriation has been used to fund flood control and other infrastructure projects under the Marcos administration

How much unprogrammed appropriations in 2026 budget?

2025/12/15 11:27
3 min read
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MANILA, Philippines – The Department of Budget and Management (DBM) initially allotted P249.9 billion for unprogrammed appropriations (UA) in the proposed 2026 national budget.

But amid the flood control and budget corruption scandal, lawmakers in both chambers of Congress trimmed this allocation.

The Philippine Center for Investigative Journalism has reported that billions of pesos worth of flood control and infrastructure projects under the Marcos administration were funded via UA.

So, how is Congress crafting the UA for 2026?

House version

In the House-approved General Appropriations Bill (GAB), lawmakers proposed P243 billion in UA. This is P6.766 billion (2.61%) lower than the P249.9 billion in the 2026 National Expenditure Program (NEP).

This reduction came mainly from the House’s decision to remove the P6.766-billion UA for Public Health Emergency Benefits and Allowances for Health Care and Non-Health Care Workers.

The House also realigned funds within the UA. It slashed P35.77 billion from the Strengthening Assistance for Government Infrastructure and Social Programs (SAGIP) to finance the counterpart funding for foreign-assisted projects. This line item was not in the NEP’s UA.

Despite these cuts, concerns over UA persisted. At least 12 lawmakers manifested their dissent during the passage of the 2026 House GAB.

Senate version

The Senate went further, cutting the UA to P174.56 billion or P68.77 billion (28.23%) lower than the House version.

Senators removed House-approved unprogrammed allocations for the following items:

  • SAGIP
  • Program on Risk Management
  • Refund of the Service Development Fee for the Right to Develop the Nampeidai Property in Tokyo, Japan
  • Marawi Siege Victims Compensation Program
  • Comprehensive and Adequate Insurance Protection for Strategically Important Government Assets and Interests

The Senate also reduced the UA for the Revised AFP Modernization Program from P50 billion in the House version to P30 billion.

Notably, senators inserted a P250-million allocation for the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, an item absent from both the NEP and the House’s unprogrammed appropriations.

They also increased the UA for Fiscal Support Arrearages under the Comprehensive Automotive Resurgence Strategy (CARS) program, from P333.5 million in the House version to P4.32 billion.

Unprogrammed appropriations are standby funds sourced from new or excess government revenues and foreign loans.

The DBM says that the concept of unprogrammed funds was introduced over four decades ago and retained by succeeding administrations. These funds can be tapped during calamities and other “activities we do not even anticipate.”

Opposition lawmakers have called it “standby pork,” with Liberal Party members questioning its constitutionality before the Supreme Court in 2024.

When the Marcos administration started, UA skyrocketed. In the first approved budget under Marcos in 2023, it was P807.16 billion, over three times more than the P251.64 billion in 2022. In 2024, it was P731.4 billion, and in 2025, it was P531.7 billion.

How much unprogrammed appropriations will remain in the final version of the 2026 national budget? And will it be free from corruption?

Bookmark Rappler’s #BudgetWatch page for stories tracking how the government allocates and spends the public’s money. – with reports from Dwight de Leon/Rappler.com

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