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DBM denies ‘magic fund’ allegations

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September 21, 2025
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DBM denies ‘magic fund’ allegations
PHILIPPINE COAST GUARD PHOTO

THE Department of Budget and Management (DBM) has pushed back against allegations that unprogrammed appropriations (UA) serve as its “magic fund” or pork barrel, while assuring the releases is under strict process and has built-in safeguards.

In a statement issued on Sept. 20, Budget Undersecretary Goddes Hope O. Libiran dispelled claims that the DBM has free rein over the use of unprogrammed funds, while calling to stop making the agency a “scapegoat for political drama.”

“Some people call it pork barrel; others make it sound like DBM has a secret ‘magic fund’ it can use anytime. Both are completely wrong,” she said.

Unprogrammed appropriations, according to the DBM, are standby funds that can only be used for certain projects that may be charged against excess or windfall revenues to fund specific programs and projects.

The controversy surrounding unprogrammed funds revived again after Senator Panfilo “Ping” M. Lacson confirmed that P600 million worth of flood control insertion projects in Bulacan, allegedly linked to Senator Emmanuel Joel J. Villanueva, were sourced from the UA in the 2023 General Appropriations Act.

Ms. Libiran said before any request for UA push through, but has to pass through the DBM’s thorough evaluation process.

“So I reiterate — Unprogrammed Appropriations are not discretionary funds. They are legal, congressionally approved standby appropriations, released only upon the request of implementing agencies, subject to strict evaluation, and consistent with the Constitution and Supreme Court jurisprudence,” she said.

Ms. Libiran also noted that the “ballooning” of UA in recent years was not in the decision of the DBM but the Congress during budget deliberation.

Under the proposed 2026 National Expenditure Program, unprogrammed appropriations were allotted P249.9 billion, equivalent to 3.68%.

Budget Secretary Amenah F. Pangandaman earlier said she wanted to limit the UA to not more than 5% of the national budget, guided by international standards. — Aubrey Rose A. Inosante

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