Palace defends P250-B unprogrammed funds

Malacañang has defended the inclusion of P250 billion in unprogrammed appropriations under the proposed 2026 national budget, saying the funds serve as a vital contingency reserve for emergencies and unforeseen needs.

- By ARGYLL CYRUS GEDUCOS, ELLSON QUISMORIO, and HANNAH TORREGOZA

Communications Undersecretary Claire Castro stressed this after lawmakers sought to remove the entire unprogrammed appropriations from the 2026 budget, which they say turns unprogrammed funds into a discretionary lump sum—which has long been thought to be prone to corruption.

In a press briefing on Wednesday, Oct. 8, Castro rejected the calls, saying the move is neither realistic nor responsible.

She stressed that the government must retain the fiscal capacity to respond swiftly to emergencies or national priorities not covered by regular allocations.

Castro said the government implements many programs that may require funding during emergencies or unexpected situations.

The Palace Press Officer assured the public that these funds are not easily spent and undergo strict procedures before release.