Unprogrammed funds set at P363.24 billion in 2025 budget

MANILA, Philippines —After much contention, President Ferdinand Marcos Jr. signed the 2025 national budget on the second-to-last day of 2024, finalizing the P363.24 billion allocation for unprogrammed appropriations (UA).

The UA consists of budget items that do not have a ready allocation and must meet several criteria before being released, such as government revenues exceeding their targets.

Under Marcos, the UA has swelled. At P807.16 billion, the 2024 UA more than tripled the highest UA approved under former President Rodrigo Duterte, which was P251.63 billion.

The swelling of the UA has been criticized due to the inclusion of key priority projects, particularly infrastructure programs. In the 2024 budget, vital transportation projects and a portion of the military’s modernization budget were placed under the UA.

For the 2025 budget, Congress once again approved a higher UA allocation for the Executive branch than originally requested. The Executive branch initially asked for P158.67 billion (the lowest proposed UA since 2018) but was granted P531.67 billion by the bicam.

Marcos vetoed several items in the bicam budget, explaining that the deleted items were inconsistent with the administration’s agenda. The UA saw the largest cut, with P168.24 billion removed, reducing the 2025 UA to P363.24 billion, the lowest approved under Marcos so far, but still higher than the Executive’s original proposal. 

Several items funded by foreign loans or grants still receive additional funding for their needs. Under the UA, a total of P112.15 billion was allocated for support to foreign-assisted projects.

Within this allocation, there are 41 items, including the following: 

A portion of the Armed Forces of the Philippines’ (AFP) modernization budget was also lodged in the UA. The Revised AFP Modernization Program has an allotted P40 billion in the 2025 UA. During the budget hearing process in 2024, lawmakers were surprised that P10 billion was redirected from the Department of National Defense’s AFP modernization budget to the UA. The 2025 UA budget for the modernization program now quadrupled the UA for 2024. 

The Marawi Siege Victims Compensation Program was also allotted