The Department of Budget and Management (DBM) on Tuesday clarified questions about the release of funds for local infrastructure projects after concerns were raised by the National Union Party (NUP) regarding delays.
The clarification followed statements by NUP chairman Deputy Speaker Ronaldo Puno of Antipolo City, who said the party is reviewing its participation in the House majority bloc due to the delayed release of infrastructure and social protection funds for their districts.
Puno said lawmakers were told that “projects should be bid out first and if there is a winning bid, then that is the time for the DBM to issue a SARO (Special Allotment Release Order) to the corresponding district and the regional director [of the Department of Public Works and Highways].”
The DBM emphasized that it does not delay the release of funds arbitrarily nor 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,” the agency said.
The department explained that modifications introduced by Congress to several locally funded infrastructure projects required additional validation and clearance from the Office of the President, consistent with the President’s Veto Message for the 2026 GAA.
“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—and where applicable, subject to the approval of the Office of the President—may the DBM issue a Special Allotment Release Order (SARO),” the agency said.
The DBM clarified that agencies are encouraged to begin procurement preparations even before the SARO is issued, but final releases depend on official requests. “What the DBM advises agencies is to undertake early procurement activities short of award for programs, activities, and projects included in the NEP,” the department added.
The agency stressed that “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.”
