DBM prefers 3% cap for unprogrammed appropriations

THE DEPARTMENT of Budget and Management (DBM) is looking at lowering the cap on unprogrammed appropriations (UA) to as low as 3% of the national budget, its top official said.

- By Justine Irish D. Tabile Senior Reporter

"As much as possible, [I want it to be low]. Because that is one of the issues that was raised not only in the budget preparation but also in the deliberation in the legislation process," Budget Secretary Rolando U. Toledo told reporters on the sidelines of an event on Tuesday.

"I myself, I can go lower by 3%, probably not just 5% just to minimize, of course, our UA level," he added.

Last year, then-Budget Secretary Amenah F. Pangandaman proposed a 5% cap on UAs to serve as an allowance for unforeseen spending needs. This was, however, called "excessive" by former Finance Secretary Ralph G. Recto, now executive secretary, who has proposed a cap of 2% of the national budget.

However, Mr. Toledo said limiting the cap for UA is still subject to congressional approval.

To make this happen, the department seeks the passage of the proposed Philippine Budgeting Code, or the Progressive Budgeting for Better and Modernized Governance bill, which is among the Legislative-Executive Development Advisory Council's common legislative agenda for the 20th Congress.

Mr. Toledo said that he is hopeful that the provisions of the bill will cover budget preparation, execution, accountability, and monitoring.

"What we also want to emphasize here is citizens' participation in the budget process. That is what we want to have there in our Philippine Budgeting Code," he said.