President Ferdinand R. Marcos Jr. is set to review a landmark budgeting code currently being finalized by the Department of Budget and Management (DBM). The proposed code aims to institutionalize critical fiscal reforms and impose stricter controls on the use of unprogrammed appropriations.
During a Palace briefing on Thursday, Presidential Communications Office (PCO) Undersecretary and Palace Press Officer Claire Castro announced that the code will establish clearer parameters for the level, scope, and release conditions of these funds.
The central goal of the reform is to ensure that unprogrammed appropriations—funds intended for unforeseen requirements—are strictly confined to specific, well-defined purposes. “A central policy intention under the proposed reform is to prevent unprogrammed appropriations from being used as a broad or discretionary funding mechanism,” Castro stated, quoting the DBM.
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The 5% Threshold: As a matter of fiscal policy, the DBM is proposing to cap unprogrammed appropriations at below 5% of the total national budget, a figure informed by historical fiscal trends.
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Presidential Support: When asked by reporters, Undersecretary Castro confirmed that President Marcos supports maintaining a rate below this 5% threshold to ensure a more prudent approach to national spending.
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Enhanced Oversight: The code will provide a structured framework for the economic team and the Executive Secretary to vet funding releases before they reach the President’s desk.
The move follows the President’s action in January, where he vetoed nearly PhP92.5 billion in unprogrammed items within the 2026 national budget. At the time, President Marcos emphasized that public funds must be expended in clear service of national interests, backed by safeguards to prevent misuse.
The DBM is currently fast-tracking the drafting process. Once complete, the measure will undergo a final review by the administration’s economic team and the Executive Secretary before being presented to the President for approval.
