BEYOND BUDGET
Assalamu alaikum wa Rahmatullahi wa Barakatuh.
I hope everyone had a restful and peaceful long holiday, ready to face new challenges and opportunities.
For us in the Department of Budget and Management (DBM), we stand firm in our commitment to fiscal efficiency, transparency, and the timely delivery of public services for the people.
As President Ferdinand R. Marcos Jr. (PBBM) emphasized during the signing of the 2025 General Appropriations Act (GAA) on Dec. 30, 2024, “This budget reflects our collective commitment to transforming economic gains into meaningful outcomes for every Filipino.”
Hence, for the government to start strong, I am glad to note that the DBM was able to release ₱5.1 trillion or about 80.7 percent of the ₱6.326 trillion fiscal year (FY) 2025 national budget to different government agencies as of end-March.
You see, this timely release is a proactive strategy to maximize the capacity of government agencies to serve. Once government agencies receive their allocated funds, they are empowered to immediately commence programs, activities, and projects (PAPs), thereby delivering services to the people. Any delay in its release would mean depriving the people of services they deserve.
Further, government spending stimulates economic growth. As the President highlighted during the 2025 GAA signing, “Our national budget is designed not just to address our present needs, but to fuel economic growth and uplift the lives of future generations.” The immediate release of funds for high-impact PAPs, such as railways, farm-to-market roads, social protection programs, healthcare, school buildings, and our digital transformation reforms, allows for smoother operations or earlier project completion.
Notably, the early release of funds to agencies ensure that PAPs required to undergo procurement can promptly proceed with the issuance of contracts, or the conduct of other procurement-related activities.
Release of funds
For those unfamiliar with the budget execution process, National Budget Circular No. 595, or the guidelines on the release of funds for FY 2025, classifies GAA items according to obligational authorities: (1) GAA as allotment order (GAAAO); and (2) For Issuance of SARO (FISARO).
Through the GAAAO, the GAA, upon its effectivity, serves as the obligational authority for the comprehensive release of funds for existing PAPs in the National Expenditure Program which remained unchanged in the GAA. As such, it authorizes agencies to obligate in accordance with its provisions, except for: (a) appropriations that, by virtue of law, general or special provisions, and rules and regulations, have conditions or requirements before release; and (b) Lump-sum appropriations in the agency budget and special purpose funds that have no details necessary for release. In the case of automatic appropriations, the allotment shall be issued by the DBM upon compliance with the conditions provided by law.
GAA items for comprehensive release include the salaries and allowances of government workers, mandatory regular operational requirements, ongoing projects, and built-in calamity funds of agencies, among others.
However, these are not immediately spent but follow their respective schedules. For example, salaries and allowances are not given one-time but gradually. The same is true with the calamity fund, which is utilized as the need arises.
Meanwhile, items requiring compliance with certain pre-conditions, in accordance with applicable laws and under existing rules and regulations, are covered by FISARO. Thus, agencies are required to submit a Special Budget Request and other budgetary requirements, as applicable. In the President’s Veto Message for the FY 2025 GAA, all congressional insertions and changes in the original NEP, which amount to ₱797 billion, have been classified under conditional implementation.
Clarifying the confusion
Some confuse the term “comprehensively released” with “actual spending,” misinterpreting that the government has already spent almost 81 percent of the budget and that there are no more available funds. The comprehensive release of the DBM merely means that the funds are readily available for agencies to use for their specific PAPs without delay. However, obligation and disbursement or spending of funds is not automatic. Thus, the total amount is not yet spent. The actual utilization of funds of agencies are better summarized by the Statement of Appropriations, Allotments, Obligations, Disbursements and Balances quarterly released by the DBM.
A comparative look
The timely release of the budget by the DBM is in fulfillment of its mandate to promote the sound, efficient, and effective management and utilization of government resources.
Historical data show that, on average, over 70 percent of the national budget are released by end-of-March of the subject fiscal year: 2016 (82.3 percent); 2017 (79.9 percent); 2018 (84.0 percent); 2019 (13.7 percent; reenacted budget); 2020 (78.4 percent); 2021 (78.0 percent); 2022 (69.4 percent); 2023 (81.9 percent); 2024 (83.2 percent); and 2025 (80.7 percent). This demonstrates the DBM’s dedication to the efficient release of the budget, allowing agencies to immediately tap their available funds.
Beyond budget, more than mere spending, the FY 2025 national budget is a key driver to realizing our development goals and an investment in the future of our nation. Its timely release is a testament to the PBBM administration’s commitment to good governance, empowering the government to immediately serve its people and fund catalysts for growth in our Bagong Pilipinas.
(Amenah F. Pangandaman is the Secretary of the Department of Budget and Management.)