President Ferdinand Marcos Jr. supports adopting a more prudent cap on unprogrammed appropriations under a proposed Philippine Budgeting Code now being drafted by the Department of Budget and Management (DBM), Malacañang said Thursday.
Presidential Communications Office Undersecretary Claire Castro said the proposal remains under policy development, with the DBM currently preparing the draft measure.
“The Department of Budget and Management is currently in the process of drafting the administration’s proposed Philippine budgeting code, which is intended to institutionalize key fiscal reforms, including clearer parameters governing the level, scope, and conditions for the release of unprogrammed appropriations,” Castro said, reading the agency’s official statement during a Palace briefing.
She said the proposal seeks to ensure that unprogrammed appropriations are confined to “a limited and clearly defined purpose,” preventing their use as a broad or discretionary funding mechanism and reinforcing fiscal discipline.
Under the draft reform, the DBM is pushing for a more conservative approach by setting unprogrammed appropriations at a rate lower than 5% of the total national budget, based on historical data and fiscal trends.
The exact threshold remains subject to further deliberation and the President’s approval.
Castro also said Mr. Marcos supports a 3% cap, much lower than the 5% figure.
The draft budgeting code will be submitted for review by the economic team, the Executive Secretary, and ultimately the President.
Castro said the DBM is expediting preparation of the measure but did not provide a specific timeline for its submission.
She emphasized that the proposal remains under interagency consultation and policy development.
