MANILA – The Department of Budget and Management (DBM) has announced its commitment to addressing budget shortfalls faced by various government agencies in the upcoming fiscal year of 2025. This announcement follows President Ferdinand R. Marcos Jr.’s statement that the government is actively seeking solutions to enhance the national budget, which he described as ‘suboptimal’ due to recent budget cuts.
The DBM’s statement aims to clarify the President’s directive to National Government Agencies (NGAs) to ensure adequate funding for ongoing projects and programs, which have been impacted by modifications made by Congress in the 2025 General Appropriations Act (GAA). The DBM is prepared to implement necessary measures to rectify these funding deficiencies.
Several strategies have been outlined by the DBM to address these shortfalls, including modifying allotments, utilizing savings to bolster underfunded areas, and accessing the Contingent Fund or Unprogrammed Appropriations. However, these actions are contingent upon meeting the specific conditions and requirements set forth in the GAA’s Special and General Provisions.
The DBM also noted that agencies can declare available allotments as savings, as per Section 77 of the 2025 GAA’s General Provisions, with the use of these funds governed by the augmentation rules in Section 78. Additionally, the Contingent Fund can be used to finance new or urgent projects of NGAs, government-owned or -controlled corporations, and local government units, pending presidential approval.
Unprogrammed Appropriations may also be utilized to fund infrastructure and social programs under the SAGIP initiative, provided there is excess revenue, which must be verified by the Bureau of the Treasury.
Earlier this month, President Marcos instructed agencies to assess and prioritize their programs, activities, and projects, identifying those ready for implementation and those that could be reprogrammed or reprioritized as potential savings. The DBM emphasized its alignment with the President’s efforts to address these funding issues, while ensuring strict adherence to budgeting, accounting, and auditing regulations.
During a full Cabinet meeting on January 7, President Marcos ordered a review of the administration’s programs within the 2025 National Expenditure Program that were defunded by Congress, especially those vital to the socioeconomic agenda. He is currently engaging in discussions with various government agencies to review their budget assessments and devise strategies to mitigate the impact of budget cuts.