Negosyante News

January 27, 2025 6:48 am

Can the 2025 Budget Be Revised? DBM Clarifies

The Department of Budget and Management (DBM) clarified that adjustments can still be made to the ₱6.326-trillion national budget for 2025, as long as these align with the provisions of the General Appropriations Act (GAA).

While President Ferdinand “Bongbong” Marcos Jr. has already signed the budget into law, the DBM highlighted specific conditions under which revisions are allowed.

Conditions for Adjustments

According to DBM Assistant Secretary Mary Anne Dela Vega, adjustments can be sourced from savings, which are defined as:

  • Projects that are abandoned or will no longer proceed.
  • Projects that have been completed.
  • Savings generated due to efficiency in operations.

The GAA specifies who has the authority to recommend or approve these adjustments, including department secretaries, the DBM chief, or the President.

Restorations and Cuts

Interior Secretary Jonvic Remulla earlier announced that President Marcos ordered the restoration of the IT budget and the removal of an additional ₱500-million intelligence fund allocated to the Philippine National Police (PNP). However, the DBM has yet to disclose where the funds for the PNP’s IT program will come from or what will happen to the slashed intelligence funds.

Alternative Sources of Funding

If savings are not available, the government has other mechanisms to fund priority projects:

  1. Contingent Funds: The 2025 budget includes ₱13 billion in contingent funds, which can be tapped for urgent needs.
  2. Unprogrammed Appropriations: These funds can only be used if there are excess revenues or if loans are secured.
    • “There should be an excess revenue. Only then, with a certification from the Treasury, can unprogrammed appropriations be used,” Dela Vega explained.

This ensures that funding adjustments remain within legal and fiscal parameters while addressing the country’s priority needs.

No comment yet, add your voice below!


Add a Comment

Your email address will not be published. Required fields are marked *

Subscribe to Our Newsletter and get a free pdf:

Sign Up for negosyante news

and receive a copy of The Crypto Cheat Sheet (PDF)
and NFT Cheat Sheet for free!

* indicates required