SolGen distances Marcos from release of unprogrammed funds, points to DBM chief

MANILA, Philippines – Solicitor General (SolGen) Darlene Berberabe reasoned before the Supreme Court that President Ferdinand Marcos Jr. need not approve the release of unprogrammed appropriations (UA), saying the General Appropriations Act (GAA) gives that authority directly to the budget secretary.

At the second round of oral arguments on Tuesday, April 21, Berberabe confirmed to Senior Associate Justice Marvic Leonen that the Department of Budget and Management (DBM) may issue Special Allotment Release Orders (SAROs) without presidential approval.

During the first half of Marcos’ term, Amenah Pangandaman served as DBM secretary before resigning amid a flood control corruption scandal. Under her tenure, UA allocations rose significantly and were used to fund controversial flood control projects.

“In other words, the DBM secretary is no longer the alter ego of the President. The DBM secretary is co-equal with the President. Or is that a mistaken assumption?” Leonen asked.

Berberabe did not directly answer and instead reiterated that “the GAA has authorized the DBM… to perform this responsibility [of releasing SARO].”

Leonen pushed back, noting that the DBM secretary reports to and is accountable to the President.

Leonen also noted that under Section 35, Chapter 5, Book VI of Executive Order No. 292 (Administrative Code), the President approves special budget requests before these are transmitted to the DBM, which then issues the SARO.

UAs are standby funds sourced from excess revenues or foreign loans. The UA’s constitutionality, however, has been challenged before the Supreme Court, with petitioners arguing that they allow Congress to sidestep the constitutional limit prohibiting it from increasing appropriations beyond the President’s proposed budget.

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The next rounds of oral arguments on the national budget are scheduled for June 2, 9, and 16. – Rappler.com