DBM: Returning full P107 billion to PDIC not fiscally prudent

The Department of Budget and Management (DBM) has decided against immediately returning the full P107.23 billion in unused reserve funds to the Philippine Deposit Insurance Corp. (PDIC). The DBM argues that doing so would be "fiscally imprudent" given the significant amount and the lack of a court order mandating the restoration.

Acting Budget Secretary Kim Robert de Leon explained that the remaining P57 billion is kept as a fiscal cushion to allow the government to respond to any potential legal obligation. The P107.23 billion was transferred to the Bureau of the Treasury in January 2025 as per a congressional directive under the 2024 General Appropriations Act.

The DBM maintains that any decision on the remaining P50.23 billion will depend on a final court ruling or legal directive, as well as the government's fiscal position and revenue performance. The DBM also clarified that the proposed 2027 National Expenditure Program (NEP) plans to construct 6,587 new classrooms, not the 700 classrooms mentioned during a Development Budget Coordination Committee briefing.