Monsod flags risks in rising unprogrammed funds during SC hearings

Economist Winnie Monsod raised strong concerns over the growing use of unprogrammed appropriations (UA) during the Supreme Court of the Philippines’ first round of oral arguments on the national budget, warning that the practice may erode transparency and fiscal discipline.

Appearing as amicus curiae, translated as friend of the court, Monsod highlighted the sharp increase in UA under the Marcos administration, saying it has had measurable effects on key economic indicators, including gross domestic product growth targets and the national government’s deficit-to-GDP ratio.

She cautioned that UA, by design, weakens budget transparency. As these funds are not part of the appropriations regularly scrutinized, Monsod said they limit legislative oversight and heighten the risk of discretionary spending.

She said such allocations “dilute congressional control over public spending.” Monsod also pointed out that UA do not consistently align with the country’s development priorities, as their use is often influenced by lawmakers’ individual agendas rather than a unified national plan.

Her concerns were echoed in varying degrees by other resource persons. Former budget secretary Benjamin Diokno questioned the constitutionality of the increase in UA, while Butch Abad argued that supplemental budgets would be a more transparent alternative.

Despite these criticisms, other officials defended the mechanism. Former Senate president Franklin Drilon maintained that UA remains a necessary fiscal tool under strict conditions, while Solicitor General Darlene Berberabe underscored its role in providing flexibility.

“Unprogrammed appropriations are neither a blank check nor unconditional. They are among the most conditioned and controlled spending authorizations in the entire government system,” she said.

The issue gained further attention as the hearings also noted delays in major infrastructure projects, including the North-South Commuter Railway and the Metro Manila Subway Project, after their funding was moved from programmed to unprogrammed appropriations.