BUDGET authorities on Tuesday denied allegations that it had delayed the release of funding for public works projects, saying budget disbursements are strictly governed by law.
This came after some legislators raised concerns over alleged delays in the funding of locally funded infrastructure projects implemented by the Department of Public Works and Highways (DPWH).
The DBM, however, said the claims were “misinformed,” emphasizing that the agency “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,” it added.
According to the DBM, several of these projects underwent changes during the legislative process when Congress introduced amendments to project descriptions, station limits, and geographic coordinates. These adjustments altered the projects originally proposed in the National Expenditure Program submitted by the executive branch.
The DBM explained that these Congress-introduced changes triggered additional requirements before funds could be released, in line with provisions contained in the president’s veto message for the Fiscal Year (FY) 2026 GAA.
Under the veto message, increases in appropriations and newly introduced budget items are subject to the government’s cash programming, prudent fiscal management rules and established budget execution procedures. Agencies must also submit revised performance targets when project outputs and outcomes are affected by congressional amendments.
“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,” the DBM said.
“Instead, appropriations for the same were placed under For Issuance of SARO (Fisaro) subject to established budget execution safeguards,” it added.
The DBM argued that the implementing agency must first formally request the release of funds from the DBM and submit the necessary documentation and project prioritization details.
Only after these requirements are fulfilled can the DBM issue a Special Allotment Release Order (SARO), which authorizes agencies to obligate the funds.
The DBM also disclosed that the initial request submitted by the DPWH for the release of funds covering certain infrastructure projects was later withdrawn by the agency itself to allow time for the completion and consolidation of supporting documents.
The DPWH has indicated that it will submit the complete documentary requirements “at the soonest possible time,” after which the DBM said it would process the request and facilitate the lawful release of funds.
The agency likewise rejected claims that it requires projects to undergo bidding 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,” it said.
“This allows implementing agencies to prepare procurement processes in advance and accelerate project implementation, but it is undertaken short of award because the NEP remains subject to the legislative process, during which project parameters may still be adjusted,” it added.
The DBM further stressed that it cannot release funds for projects that have not been formally requested by implementing agencies.
“Budget releases are triggered by official requests from implementing agencies, not by unilateral action on the part of DBM,” the department said.
The agency maintained that it does not delay projects but instead ensures that government spending complies with the national budget law and safeguards designed to protect taxpayer funds.
