Unprogrammed funds set at P363.24 billion in 2025 budget
MANILA, Philippines —After much contention, President Ferdinand Marcos Jr. signed the 2025 national budget on the second-to-last day of 2024, finalizing the P363.24 billion allocation for unprogrammed appropriations (UA).
The UA consists of budget items that do not have a ready allocation and must meet several criteria before being released, such as government revenues exceeding their targets.
Under Marcos, the UA has swelled. At P807.16 billion, the 2024 UA more than tripled the highest UA approved under former President Rodrigo Duterte, which was P251.63 billion.
The swelling of the UA has been criticized due to the inclusion of key priority projects, particularly infrastructure programs. In the 2024 budget, vital transportation projects and a portion of the military’s modernization budget were placed under the UA.
For the 2025 budget, Congress once again approved a higher UA allocation for the executive branch than originally requested. The executive branch initially asked for P158.67 billion (the lowest proposed UA since 2018) but was granted P531.67 billion by the bicam.
Marcos vetoed several items in the bicam budget, explaining that the deleted items were inconsistent with the administration’s agenda. The UA saw the largest cut, with P168.24 billion removed, reducing the 2025 UA to P363.24 billion, the lowest approved under Marcos so far, but still higher than the executive branch’s original proposal.
What are the major projects under the 2025 UA?
Several items funded by foreign loans or grants still receive additional funding for their needs. Under the UA, a total of P112.15 billion was allocated for support to foreign-assisted projects.
Within this allocation, there are 41 items, including the following:
- Philippine Digital Infrastructure Project
- Light Rail Transit LRT Line 1 Cavite Extension
- MRT Line 4 Project
- New Cebu International Container Port
- Maritime Safety Enhancement Project
- Maritime Safety Enhancement Project
- Metro Manila Flood Management Project, Phase I
- Philippine Seismic Risk Reduction and Resilience Project
- Cebu Bus Rapid Transit Project
- Cebu-Mactan Bridge and Coastal Road Construction Project
- Davao Public Transport Modernization Project
- Metro Manila Subway Project Phase I
- North-South Commuter Railway System
- Maritime Safety Capability Improvement Project
A portion of the Armed Forces of the Philippines’ (AFP) modernization budget was also lodged in the UA. The Revised AFP Modernization Program has an allotted P40 billion in the 2025 UA. During the budget hearing process in 2024, lawmakers were surprised that P10 billion was redirected from the Department of National Defense’s AFP modernization budget to the UA. The 2025 UA budget for the modernization program now quadrupled the UA for 2024.
The Marawi Siege Victims Compensation Program was also allotted P2 billion in the UA.
The government was also given P364,099,000 of UA funds for the Comprehensive Automotive Resurgence Strategy (CARS) Program. The CARS program is a government project that incentivizes the local production of automobiles in the country.
Which items were vetoed from the 2025 UA?
The bulk of Marcos’ vetoed items were under the UA, including several flood mitigation projects. Department of Public Works and Highways (DPWH) Secretary Manuel Bonoan had previously admitted that several items in the budget were not ready for implementation.
Marcos vetoed a P5 billion UA item for the Rice Competitiveness Enhancement Fund (RCEF), 60% of which was allocated for machinery and equipment for qualified farmers, while the remaining portion was for seed development.
However, the RCEF already receives funding from tariffs collected under the Rice Tariffication Law. In December 2024, Marcos also signed a law that tripled the annual allocation for the RCEF from P10 billion to P30 billion.
Some of the other vetoed UA items include:
- Priority Social Programs for Health (including Health Facilities Enhancement Program), Social Welfare and Development, Higher Education, and Technical and Vocational Education, and Other Social Programs: P76,990,648,000
- Pantawid Pamilyang Pilipino Program: P50,000,000,000
- Asset Preservation Program: P10,000,000,000
- For Payment of Right-of-Way: P7,500,000,000
- Department of Education’s Computerization Program: P5,000,000,000
- Public Health Emergency Benefits and Allowances for Healthcare and Non-Healthcare Workers: P2,000,000,000
- Pambansang Pabahay Para sa Pilipino Program: P1,000,000,000
- Social Pension for Indigent Senior Citizens: P1,000,000,000
- Community Mortgage Program of the Social Housing Finance Corporation: P500,000,000
Since these items were vetoed, they could not be reallocated. They are considered deleted from the 2025 budget.
Marcos vetoed a whopping P194 billion from the 2025 budget — the largest cut he had made during his presidency. From P6. 352 trillion initially proposed by the executive branch, the 2025 budget is now P6.326 trillion.
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