The Department of Budget and Management (DBM) defended recent modifications to the 2025 General Appropriations Act (GAA), emphasizing that the changes align with President Ferdinand ‘Bongbong’ Marcos Jr.’s directive to ensure government resources are utilized efficiently and effectively.
The adjustments, including budget realignments affecting the Philippine National Police (PNP), aim to prioritize ready-to-implement programs while addressing funding deficiencies.
In a statement, the DBM explained that the moves were in line with President Marcos’s instructions for National Government Agencies (NGAs) to review, rationalize, and prioritize programs, activities, and projects (PAPs) ready for implementation.
Programs identified as non-essential or underperforming are being reviewed for potential reprogramming or reallocation to ensure optimal use of government funds.
“Pursuant to the President’s directive, the DBM is committed to addressing funding deficiencies for various departments for FY 2025, including the PNP, through appropriate measures such as allotment modifications, use of savings, or tapping the Contingent Fund or Unprogrammed Appropriations,” the DBM stated.
“These actions comply with the conditions and requirements prescribed under the applicable provisions of the GAA,” it added.
The DBM cited Sections 76 to 81 of the 2025 GAA as the legal basis for such adjustments. Specifically, Section 77 defines the conditions under which agency allotments may be declared as savings, while Section 78 provides rules on augmenting deficient items.
According to Section 78, a deficiency in an appropriation may result from unforeseen adjustments in a program or the re-assessment of resource distribution. The section also stipulates that expenditures funded by savings must pertain to an existing activity or project.
The DBM further explained that the Contingent Fund could be used to address urgent funding needs for new or ongoing activities of NGAs, government-owned and -controlled corporations (GOCCs), and local government units (LGUs), with the President’s approval.
Infrastructure and social programs under the Support for Infrastructure Projects and Social Programs (SAGIP) initiative may also be covered through Unprogrammed Appropriations, provided there is excess revenue certified by the Bureau of the Treasury.
“It is understood that the process and procedures to be undertaken shall strictly adhere to budgeting, accounting, and auditing laws, rules, and regulations,” the DBM said.
The DBM reiterated that the budget adjustments comply with the legal framework outlined in Republic Act No. 12116, which was approved by Congress.
“This process ensures that the government’s resources are utilized efficiently and effectively to address the needs of the Filipino people,” the department said.