Extra P449B standby funds constitutional, DBM says

BUDGET Secretary Amenah Pangandaman yesterday insisted on the constitutional validity of the additional P449 billion unprogrammed appropriations inserted by Congress in the 2024 national budget amid the continuing discussions challenging its legality.

During the Kapihan sa Manila Bay forum, Pangandaman welcomed petitions filed with the Supreme Court questioning the approval of the extra unprogrammed funds, emphasizing that such debates showcase the vitality of democracy in the country.

“We respect and acknowledge the right of any individual, and/or groups to file petitions in our courts to address the issue since it is the judiciary that has the ultimate authority to make determinations on questions of law, including the Constitution,” Pangandaman said.

Acknowledging potential gray areas in interpreting laws, Pangandaman agreed that an SC scrutiny is crucial: “At the end of the day, malalaman natin kung ano ba talaga (we will know [if the funding] is legal or not]. From our end, we think it is constitutional. It may be due to differences in opinion and interpretation.”

The DBM had previously issued a statement clarifying that unprogrammed appropriations serve as standby funds, outside the approved government fiscal program, available for unforeseen but significant expenditures.

According to Pangandaman, these funds are not included in this year’s P5.768 trillion budget which was approved and signed by the President.

She insisted that the appropriations are not automatically allocated by the government, as she underscored the conditional nature of unprogrammed funds.

She added that release of the funds is contingent upon meeting various funding conditions, such as the Bureau of the Treasury collecting excess revenue or new revenue from tax or non-tax sources.

Additionally, the realization of foreign or approved financial loans/grants proceeds could trigger the availability of unprogrammed funds.

To ensure responsible spending within allowable limits, Pangandaman said government agencies must submit necessary documentary requirements before gaining access to standby funds.

‘FORGETFUL’

Meanwhile, the chairperson of the House Committee on Appropriations yesterday