Ex-Finance Chief Urges Cuts in Unprogrammed Appropriations

Former Finance Secretary Margarito “Gary” Teves has called on lawmakers to reduce unprogrammed appropriations in the national budget, stressing the need for better fiscal management and a focus on revenue generation.

Teves emphasized that trimming unprogrammed appropriations would allow the Department of Finance (DOF) to concentrate on increasing revenues, rather than relying on excess funds from government-owned and controlled corporations (GOCCs) to finance unprogrammed projects. He raised concerns about diverting idle GOCC funds, such as the P89.9 billion from PhilHealth, back to the Treasury for this purpose.

Finance Secretary Ralph Recto echoed Teves’ sentiments, stating, “I agree with the statement of former sec. Gary Teves. I don’t expect this to continue next year.”

Teves highlighted that unprogrammed appropriations have significantly grown, reaching P807.2 billion in 2023 and P731.4 billion in 2024, which accounts for 15% and 13% of the national budget, respectively—more than double the 5% average from 2010 to 2022. He warned that placing key priority programs, such as health facility upgrades and housing for the poor, under unprogrammed funds could delay their implementation due to the uncertainty of funding.

He urged the convening of the Legislative-Executive Development Advisory Council (Ledac) to ensure critical programs are prioritized in the programmed budget, suggesting this be done before the 2025 budget is deliberated in Congress.

Teves concluded that the DOF should focus on improving tax collection and managing fiscal deficits, rather than seeking idle funds from GOCCs to cover rising unprogrammed appropriations.