Business groups are sounding the alarm over the remaining unprogrammed appropriations (UAs) in this year’s ₱6.793-trillion national budget, warning that the lack of transparency over these expenditures could further erode public trust in the government.

In separate statements, the Makati Business Club (MBC) and the Financial Executives Institute of the Philippines (FINEX) expressed concerns over the ₱150.9 billion in UAs retained in the 2026 budget.

Since UAs are not covered by regular budget financing, they can only be funded by excess or new tax and non-tax revenues, as well as foreign loans for specific projects and programs.

While UAs have been reduced to their lowest level since 2019, FINEX argued that its multibillion-peso scale still creates uncertainty and heightens governance risks if not subject to transparent conditions.

“Without clear triggers, safeguards, and public disclosure, unprogrammed funds risk undermining budget credibility, distorting spending priorities, and eroding public trust,” the group said.

MBC, for its part, said President Ferdinand “Bongbong” Marcos Jr. should have taken more aggressive action by scrapping the entire UAs altogether, which it described as “constitutionally questionable.”

The business group said the remaining funds could be subject to discretionary disbursement or released in the form of aid programs (or “ayuda”) that are at risk of political patronage.

While Marcos has promised that politicians will no longer be allowed to intervene in the distribution of government assistance programs, MBC said this should be embodied in tangible policy rather than a verbal assurance.

“We are requesting an executive order (EO) to create rights-based and rules-based mechanisms to govern the disbursement of ‘ayuda’ funds, and to strictly limit confidential and intelligence funds to legitimate security uses,” MBC said.

Under the national budget, Marcos vetoed seven of the 10 UAs, which had a combined amount of around ₱92.5 billion.

He opted to retain the remaining items, which cover support for foreign-assisted projects (FAPs) amounting to ₱97.31 billion, the revised modernization program of the Armed Forces of the Philippines (AFP) worth ₱50 billion, and the risk management program with ₱3.6 billion.

The government has assured that these funds are subject to safeguards, becoming available only when clearly defined triggers and tests are met and released only after validation.

However, MBC was quick to point out that these supposed safeguards remain untested.

“Experience has shown that patronage will find a way. [So] the implementation phase will be critical,” it said.

MBC noted that this year’s national budget is an improvement compared to spending plans in recent years, citing transparency efforts in the budget process.

However, it emphasized the need for greater transparency to obtain a full picture of where every peso goes, especially in the wake of a massive corruption scandal involving flood control projects.

“Information and transparency are necessary in the fight against corruption,” the group said.

When used effectively, FINEX said the national budget can build confidence, attract private investment, and promote inclusive development in the country.

Still, the group cautioned that this should not come at the expense of transparency, adding that public funds must be guided by measurable outcomes and strong oversight.

“A budget that boosts the economy while maintaining transparency, accountability, and the rule of law is essential for building investor confidence and achieving long-term, inclusive growth for the Philippines,” FINEX said.

For the Philippine Chamber of Commerce and Industry (PCCI), expanding transparency in the government could be achieved through the proposed Citizens’ Access and Disclosure of Expenditures for National Accountability (CADENA) Act, which was earlier identified by Marcos as one of the four measures that Congress should give “priority” to.

Also known as the Blockchain the Budget Bill, the measure seeks to establish a digital budget portal allowing the public to access comprehensive information on the spending of public funds.

“It is not enough to know what projects are created and funded, but rather the detailed cost of the project should be transparent to ensure efficient use of taxpayers’ money,” PCCI president Ferdinand Ferrer said in a statement.

“There has to be proper check and balance in every project spending,” he added.

As a short-term solution, PCCI is pushing the government to ramp up its consultations with the private sector to ensure that this year’s budget is effectively implemented.

The group is also calling for the adoption of fiduciary safeguards and institutionalized stakeholder dialogues during the actual budget execution phase as another layer to weed out corruption.