The government is ordering its agencies to surrender unspent funds from last year’s budget to bankroll a multi-sectoral relief package, as the Marcos administration scrambles to address the deepening energy crisis.

Budget Secretary Rolando U. Toledo issued National Budget Circular No. 603-2026 on May 4, mandating a sweeping review of all remaining 2025 appropriations.

The DBM directive aims to consolidate capital for the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT), a program designed to cushion the economy against volatile power costs and supply instability.

According to the circular, the DBM is specifically targeting “unobligated allotments under the FY 2025 General Appropriations Act (GAA) that will no longer be used” to serve as an additional funding source for the government’s energy response.

Agencies are now required to scour their previous year’s books to identify funds that can be diverted to the UPLIFT program.

Accordingly, all covered entities—including departments, state universities and colleges (SUCs), and government-owned and controlled corporations (GOCCs)—are required to review their FY 2025 unobligated allotments as reported in their Financial Accountability Reports as of March 31.

These agencies are then required to submit a formal certification of these savings to the DBM “not later than” May 15.

While the government seeks to mobilize capital quickly, the circular introduces a high-stakes penalty for agencies that sacrifice long-term projects to meet the new funding requirements.

If an agency declares savings by discontinuing or abandoning a project, “such discontinued or abandoned P/A/P shall no longer be proposed for funding in the next two fiscal years,” the DBM warned.

This measure is designed to ensure that only truly surplus funds are surrendered, preventing agencies from abandoning projects now only to request the same funds in the next budget cycle.

To improve operational efficiency, the circular requires all national government agencies, local government units, and government-owned and controlled corporations to comply with the Government Energy Management Program (GEMP) and existing energy efficiency and conservation rules.

Note that the guidelines “shall remain in full force and effect for the duration of the national energy emergency, unless extended or lifted earlier by the President.”

As the May 15 deadline approaches, the DBM will begin issuing Negative Special Allotment Release Orders (SAROs) “corresponding to the savings declared” to move the capital to the UPLIFT program.

Late last month, the government also ordered state agencies to implement sweeping austerity measures, including a 20 percent cut in operational costs and the suspension of major infrastructure projects, to shore up funding as risks to energy security keep escalating.

These cuts cover a broad spectrum of government activity, including official travel, training programs, scholarships, and office supplies.