President Marcos supports the Department of Budget and Management's (DBM) proposal to lower the cap on unprogrammed appropriations (UAs) to 3 percent, Malacañang said.

"Yes," Palace Press Officer and Communications Undersecretary Claire Castro said when asked on Thursday, Feb. 26, if the President supports the proposal.

According to Castro, the proposal is currently being drafted by the DBM and is being fast-tracked for review.

In a statement, the DBM said the move is part of the proposed Philippine budgeting code that intends to set clearer parameters for the release of unprogrammed funds.

"The Department of Budget and Management is currently in the process of drafting the administration’s proposed Philippine budgeting code, which is intended to institutionalize key fiscal reforms, including clearer parameters governing the level, scope, and conditions for the release of the unprogrammed appropriations," the department said in a statement read by Castro during a Palace briefing.

The DBM stressed that the central policy intention under the proposed reform is "to ensure that unprogrammed appropriations are confined to a limited and clearly defined purpose," preventing their use as a broad or discretionary funding mechanism and enforcing fiscal discipline.

It added that the draft measure will be submitted for review by the President, the economic team, and the Executive Secretary.

The matter remains under policy development and interagency consultation, the DBM said.

"As a matter of fiscal policy direction, the DBM’s position is to adopt a more prudent and disciplined approach by setting the level of unprogrammed appropriations at a rate lower than five percent of the total national budget based on historical data and fiscal trends," the DBM said.

"The precise threshold, however, will remain subject to further deliberation and the President’s approval in the context of the proposed budgeting code," it added.