27/03/2026
ON THE MISINFORMED ALLEGATIONS REGARDING THE RELEASE OF FUNDS FOR PUBLIC WORKS PROJECTS
The Department of Budget and Management (DBM) takes note of recent statements made by some lawmakers alleging delays in the release of funding for public works projects.
While the DBM respects the oversight role of Congress, it is important to clarify several factual and legal points to ensure that the public is properly informed on how the national budget is implemented.
First, the DBM does not arbitrarily delay the release of funds, nor does it create policies outside the law. All budget releases are governed strictly by the 2026 General Appropriations Act (GAA)—a law passed by Congress itself and approved by the President.
For several locally funded infrastructure (LFI) projects under the Department of Public Works and Highways (DPWH), Congress introduced amendments—including adjustments in project descriptions, station limits, and geographic coordinates—which resulted in modifications to projects originally proposed in the National Expenditure Program (NEP) submitted by the Executive.
As provided in the President’s Veto Message for the FY 2026 GAA, such Congress Introduced Changes and Adjustments (CICA) require additional validation and clearance prior to the release of funds.
Article VI of the President’s Veto Message provides that: “…the increases in appropriations and new budgetary items introduced by the Congress in this Budget shall be subject to the national government’s cash programming, observance of prudent fiscal management, applicable budget ex*****on rules and procedures… based on the programmed priorities of the government…. 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… require the submission of their revised performance targets.”
Since the projects in question were modified during the legislative process, they were not covered under the GAA as the Allotment Order (GAAAO), which allows the comprehensive release of allotments at the start of the fiscal year. Instead, they appropriations for the same were placed under For Issuance of SARO (FISARO) subject to established budget ex*****on safeguards.
Under this arrangement, the implementing agency must first submit a formal request to DBM for the release of funds, supported by the required documentation and project prioritization. Only after these conditions are satisfied may the DBM issue a Special Allotment Release Order (SARO).
With respect to the projects cited, the initial request submitted by DPWH for FISARO covering certain LFI projects was subsequently withdrawn by the implementing agency to allow for the completion and consolidation of the necessary supporting documentation. DPWH has indicated that the complete documentary requirements will be submitted at the soonest possible time to enable DBM to process the request and facilitate the lawful release of funds.
Second, it is inaccurate to claim that DBM requires projects to be bid out first before deciding whether funds will be released. What the DBM advises agencies is to undertake early procurement activities short of award for programs, activities, and projects included in the NEP. This allows implementing agencies to prepare procurement processes in advance and accelerate project implementation, bit is undertaken short of award because the NEP remains subject to the legislative process, during which project parameters may still be adjusted.
Third, allow us to emphasize that the DBM cannot release funds for a project that has not been requested by the implementing agency. Budget releases are triggered by official requests from implementing agencies, not by unilateral action on the part of DBM.
The DBM does not delay projects. It only ensures that public funds are released lawfully and in accordance with the budget approved by Congress and signed by the President.
Ultimately, the DBM’s mandate is not political but institutional. The Department’s responsibility is to protect the integrity of the national budget, safeguard taxpayer funds, and ensure that government programs are implemented strictly within the parameters authorized by law.
The DBM remains committed to working with Congress and implementing agencies to ensure the timely, lawful, and responsible implementation of infrastructure programs for the benefit of the Filipino people.
Source: DBM
