MANILA — The Department of Budget and Management (DBM) on Wednesday defended some P588 billion worth of unprogrammed funds in next year's proposed budget.

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DBM Secretary Amenah Pangandaman said there were "no irregularities" in the suggested national spending plan in 2023, after Deputy Speaker Ralph Recto said authorities should explain where the unallocated money is going.

The allocations are the following, she said:

• P149.6 billion - support for infrastructure projects and social programs (inclusive of P22 billion for procurement of vaccines)
• - P5 billion - AFP modernization program
• P20.6 billion - budgetary support to government-owned and/or controlled corporations
• P380 billion - support to foreign-assisted projects (P2.2 billion for DSWD and P378.2 billion for the Department of Transportation)
• P1 billion - risk management program
• P2 billion - payment for Land Transportation Office's IT "arrears"
• P210.5 million - refund of the service development fee for the right to develop the Nampeidai Property in Tokyo, Japan
• P10 billion - Bangko Sentral ng Pilipinas (BSP) equity infusion or the payment of increase in capitalization of the BSP pursuant to Section 2 of R.A. No. 7653, as amended by R.A. No. 11211.
• P18.9 billion - public health emergency benefits and allowances for health and non-health care workers
• P14 million - prior years' local government unit shares

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Among those questioned by Recto in the 2023 unprogrammed appropriations are the "Support for the Infrastructure Projects and Social Programs" worth P149 billion and "Support to Foreign Assisted Projects" worth P380 billion.

"I'm not against unprogrammed funds but what I'm asking for is a more detailed explanation," Recto said during an interview on ANC.

But Pangandaman said government usually sources its emergency cash funds from infrastructure projects and social programs allocation.

"Ang mga proyekto na nilalagay dito, ito 'yung mga proyekto na hindi pa natin alam na mangyayari katulad noong nangyari ang pandemic o... fuel hike," the DBM chief told reporters during a Palace briefing.

(The projects we put here are projects we include in cases of unforeseen events such as the pandemic or the fuel hike.)

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"Dito natin kinuha ang pondo para sa pagbibigay ng free bus carousel natin, additional funding for our ayuda and even 'yung pagtatayo natin ng mga clinics or services sa health sector noong panahon ng pandemic," she added.

(This is where we got the funds for the free bus carousel, additional funding for the cash aid, and even the clinics or services that the health sector provided at the height of the pandemic.)

Contrary to the criticism that these were not allocated, Pangandaman said, these were "itemized."

"Puwede siya kung mayroong hindi tayong inaasahang pangyayari parang sa pandemic or 'yung mga proyekto dito na inidentify natin, pag nagkaroon tayo ng extra revenue from Department of Finance, Bureau of Internal Revenue, or Bureau of Customs, puwede mag-trigger ng release ng mga proyekto dito," she said.

(This can be used in cases of unforeseen circumstances like the pandemic or the projects we identified when we generate extra revenue from DOF, BIR, or Bureau of Customs.)

In a separate statement, she said these funds will give government the necessary fiscal space in cases of emergencies.

"In our country where we have calamities we do not expect or activities we do not even anticipate but necessitates us to provide services to our people, the [unprogrammed appropriation[ is an available resource cover that will trigger additional amounts for the national government."

• PH budget for 2023 to focus on economic recovery - solon

The government has a proposed P5.268 trillion national budget for 2023, more than P244 billion compared to this year’s spending plan.

The budget will focus on the country's economic recovery following the COVID-19 pandemic, Rep. Stella Quimbo said.