MANILA – A Special Allotment Release Order (SARO) is needed before funds can be disbursed for nearly PHP800 billion worth of programs and projects (PAPs) that are part of the “insertions” made by Congress in the 2025 budget, Budget Secretary Amenah Pangandaman said Wednesday.
Pangandaman made the statement during the Kapihan sa Manila Bay, as she noted that around 12,900 line items were introduced by Congress in the national budget for 2025.
She added that the PAPs covered by Congress’ insertions are worth PHP783 billion, with over PHP586 billion listed under the Department of Public Works and Highways (DPWH).
“Kailangan po mag-submit ng additional documentary requirements ‘yung mga department and agencies bago po iyan mailabas (Departments and agencies need to submit additional documentary requirements before they can be released),” Pangandaman said.
“Bakit kailangan nun? Dahil gusto nating malaman kung ang mga proyektong ito ay readily implementable at dumaan po ba ito sa tamang proseso ng pagpaplano ng mga ahensiya, departments. That is PHP783 worth of PAPs (Why is that necessary? Because we want to know if these projects are readily implementable and if they have gone through the proper planning process of the departments. That is PHP783 worth of PAPs),” she added.
Citing Section 6 of the President’s veto message, Pangandaman said the increases in appropriations and new budgetary items would be subject to cash programming, prudence fiscal management, budget rules and procedures, and presidential approval, based on the government’s programmed priorities.
“Therefore, considering that such increases in appropriations and new budgetary items will have corresponding effects on the outputs and outcomes of the agencies concerned, the DBM shall inform the said agencies of the changes in their respective appropriations and require the submission of their revised performance targets,” Pangandaman said.
Pangandaman noted that last year, the budget for new items was released without conditions set.
For the 2024 national budget, around 90 percent of the funding allocations had already been released on the first day of January 2024, with SAROs issued and corresponding cash requirements for the first quarter, Pangandaman said.
Pangandaman, however, said the budget for this year’s PAPs is currently withheld because of the conditional provision in the veto message.
“Meaning, lahat po ng increases sa PAPs sa NEP (National Expenditure Program) na sinubmit po naming sa Kongreso at lahat po ng bagong item, hindi po iyan automatically released ngayong January 1 (all the increases in the PAPs in the NEP that we submitted to Congress and all the new items, they will not be automatically released this January 1),” she said.
The DBM said the new requirement serves as an added safeguard to prevent misuse of the budget, ensuring that increases or new items introduced by Congress align with the government’s cash programming, adhere to prudent fiscal management, secure approval from the President, and comply with budget rules and guidelines.
Out of the PHP783 billion worth of PAPs, around PHP26 billion was directly vetoed by the President, resulting in a net amount of PHP757 billion for the issuance of a SARO.
The DBM said the PHP757-billion budget adjustments are now subject to a process called For Issuance of SARO or FISARO.
It added that agencies would also be required to submit updated performance targets to reflect these changes.
“The SARO will only be released once agencies meet the necessary requirements and secure approvals from the Executive Secretary and the Office of the President,” the DBM said. “This step ensures that the government’s spending remains aligned with its priorities and fiscal goals. Secretary Mina emphasized that this process supports transparency, fiscal discipline, and the efficient use of public funds.” (PNA)