MANILA — President Ferdinand R. Marcos Jr. will review a budgeting code being drafted by the Department of Budget and Management (DBM) that aims to institutionalize key fiscal reforms and enforce stricter discipline on the use of unprogrammed appropriations (UAs), a Palace official said.

In a briefing, Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro said the code will establish clearer rules on the level, scope, and conditions for releasing UAs.

“A central policy intention under the proposed reform is to ensure that unprogrammed appropriations are confined to a limited and clearly defined purpose, thereby preventing their use as a broad or discretionary funding mechanism and enforcing fiscal discipline,” Castro said, citing the DBM.

The draft budgeting code will undergo review by the economic team, the executive secretary, and ultimately the President. Castro said the measure remains under policy development and interagency consultation.

As part of the proposed reforms, the Palace noted that UAs are expected to be capped at below 5 percent of the total national budget, based on historical data and fiscal trends. The exact threshold will be finalized after deliberations and the President’s approval. When asked if President Marcos supports a rate below 5 percent, Castro confirmed his backing.

The DBM is fast-tracking the drafting of the code for review by the economic team and the President.

Earlier in January, President Marcos vetoed several items under UAs worth nearly PHP92.5 billion in the 2026 national budget approved by Congress. The veto was intended to ensure that public funds are spent for clear national priorities, with sufficient safeguards to prevent misuse.