Deputy Speaker Isidro Ungab (File photo) MANILA - Deputy Speaker Isidro Ungab on Tuesday said the Department of Budget and Management (DBM) should defend and explain some PHP588 billion in unprogrammed appropriations under the proposed PHP5.268 trillion 2023 national budget. Ungab said the unprogrammed appropriations cover 16 percent of the total proposed expenditures in the programmed portion of the proposed national budget for next year, which is a "sharp turn" from the 2 percent to 5 percent in previous years. He said he still considers the unprogrammed funds as part of President Ferdinand Marcos Jr.'s proposal under the National Expenditure Program (NEP), even if these are deemed as "standby appropriations" that were not backed up by revenues at the time the budget proposal was submitted by the President to Congress. He noted that while unprogrammed appropriations (UAs) are part of the NEP, the same are netted out as part of the cash-based budget. "I believe clarifications on these UAs must be made, considering its impact on the fiscal discipline or fiscal program of the national government, since the unprogrammed appropriations are also considered revenue-based expenditure. Thus, it would be best if we were able to include these UAs in the budget, with sufficient guidelines and proper limitations," Ungab said. He said the unprogrammed funds are standby appropriations and not backed up by revenues. Any expenditure from this fund may only be authorized when supported by excess revenue collections in any one of the identified non-tax revenue sources from its corresponding revenue collection targets; new revenue collections or those arising from new tax or non-tax sources; and approved loans for foreign-assisted projects, he said. He said a big amount of unprogrammed funds may hinder support for future supplemental budgets, noting that the excess or new revenue sources may be used first to fund the unprogrammed appropriations in the General Appropriations Act, even if the new programs or projects are of equal or more importance. Deputy Speaker Ralph Recto, meanwhile, said the unprogrammed funds worth half a trillion pesos should be itemized. "It is more than double the current year's PHP251.7 billion unprogrammed fund," Recto said. He said among the "unclear and undefined" purposes in the 2023 Unprogrammed Appropriations is the "Support to Foreign Assisted Projects" with a proposed PHP380.6 billion, as well as the PHP149.7 billion for "Support for Infrastructure Projects and Social Programs". "While it is part of the NEP, the unprogrammed fund is not included in the total amount. The result is, every popular budget literature nowadays quotes a smaller budget level," Recto said. Recto said while the unprogrammed funds can only be released if several "funding triggers" are met, the authority to spend it comes with the passage of the national budget. "Thus PHP5.856 trillion is the ceiling of the proposed 2023 budget," Recto said. "Once the latter becomes law, it confers standby authority to the executive to spend it, provided conditions are met." (PNA) }