The Department of Budget and Management (DBM) said it will implement the approved spending appropriations for this year, even if there are legal challenges regarding unprogrammed funds in the Supreme Court.

On Wednesday, Jan. 3, the budget department maintained that the unprogrammed funds in the 2024 general appropriations act (GAA) are standby funds, which are not part of the approved government spending plan.

“Rest assured that regardless of any petition or challenge, the DBM shall work within our approved fiscal program,” the department said.

The DBM issued a statement after Senator Aquilino "Koko" Pimentel III announced his plan to challenge the 2024 national budget, particularly the alleged unconstitutional increase made by Congress under the unprogrammed appropriations.

“Allow us to emphasize that unprogrammed appropriations are standby appropriations, outside the approved government fiscal program, which serve as an important tool for the government to address unforeseen expenditures and prioritize essential programs and projects,” DBM said.

According to the DBM, the funding is not part of the P5.7676 trillion 2024 national budget because it is about standby funds that still need to be approved by Congress.

The DBM also said that unprogrammed funds are not allocated automatically and are only released when certain funding conditions are fulfilled. 

These conditions include exceeding the planned tax revenues, generating new revenues from taxes or other sources, or receiving proceeds from foreign loans or grants.

“Should there be new or excess revenues that may trigger the availability of the unprogrammed funds, government agencies are required to submit the necessary documentary requirements before access to the standby funds is given,” the DBM said.

“Such conditions ensure that spending stays within allowable limits,” it added.

Additionally, it is important to recognize that according to the constitutional provision in Section 29 (1), Article VI, it is stated that "No money shall be paid out of the Treasury except in pursuance of an appropriation made by law,” the DBM said.

This indicates that the determination and approval of the scope of any appropriations fall under the authority of the legislature, the department concluded.