Manila: The House of Representatives in Manila has approved a bill to reallocate excess funds from government-owned and controlled corporations (GOCCs) to support unprogrammed appropriations in the 2023 budget. House Bill 9513, passed during a plenary session through voice voting, seeks to amend Republic Act 11936, the 2023 General Appropriations Act, by adding a new criterion for accessing unprogrammed appropriations.
According to Philippines News Agency, GOCCs' funds exceeding their operational expenses, benefit obligations, or reserve requirements can be used for critical projects under unprogrammed appropriations.
The Department of Budget and Management defines unprogrammed appropriations as budget items providing standby authority for additional obligations for priority programs or projects when revenue collection surpasses targets or when new grants or foreign funds are obtained. Currently, unprogrammed appropriations are funded using excess collections from non-tax revenue sources, new revenue from new tax or non-tax sources not included in the Budget of Expenditures and Sources of Financing (BESF), or approved foreign-assisted project loans.
The bill's explanatory note states that certain government corporations possess funds that significantly exceed their current administrative and operational needs, leading to idle funds in banks or investments in time deposits and securities. The note argues that redirecting these funds to unprogrammed projects is a more efficient use of national resources. This approach would enable these corporations to contribute to the government's financial needs and fund important unprogrammed projects.