PHL exceeded 2025 GAA, Budget department says

THE Department of Budget and Management (DBM) said unprogrammed appropriations in the 2025 budget declined sharply to P57.6 billion from the year-earlier P531.37 billion, but the government still ended up spending P6.49 trillion, exceeding the budget of P6.33 trillion.

In a preliminary Status of Allotment Release report released on Feb. 24, the DBM said the P6.49 trillion included automatic appropriations of about P2.07 trillion, which must be funded by law or enforceable debt agreement, with the government afforded little discretion, unlike in the case of unprogrammed items, which are contingent on the availability of surplus funds.

These included a P1.03-trillion National Tax Allotment (NTA) for local governments. The NTA represents the 40% local government share of the National Government’s income from three years prior, and is automatically transferred to fund local government unit (LGU) operations, particularly to LGUs with insufficient revenue to sustain themselves.

Other automatic transfers include P800.51 billion in interest payments, and P83.42 billion for the Block Grant.

The government through its fiscal consolidation program is trying to rein in debt by making collection and spending more effective. However, it is also under pressure to fund legislative measures and other obligations, for which no ready funding was available at the time the budget was prepared. It has resorted to making spending on such items conditional, to be funded only if government revenue exceeds projections.

Of the spending items outlined in the Status of Allotments report, the DBM said about P110.36 billion was disbursed to support foreign-assisted projects, while P51.97 billion was released for “strengthening assistance for government infrastructure and social programs.”

Releases included P78.85 billion for the retirement and life insurance premiums and P37.35 billion for the Special Account in the General Fund. — Justine Irish D. Tabile