Palace Justifies P4.5B Confidential Budget Request

(UPDATE) MALACAÑANG on Thursday defended the P4.5 billion in confidential funds proposed for the Office of the President in the 2026 budget, saying the chief executive needed such funds as he is commander-in-chief, and chief architect of national security and foreign policy.

In a press conference, Palace Press Officer Claire Castro said there was nothing wrong with having a confidential and intelligence fund as long as it was used properly.

“We should keep in mind that confidential funds, or money, are not inherently wrong if used properly. Confidential funds or resources only become wrong if used by someone corrupt — that’s all there is to it,” she added.

Budget Secretary Amenah Pangandaman on Monday said the Department of Budget and Management (DBM) proposed P10.7 billion in total confidential and intelligence fund (CIF) allocations, or 11 percent lower than last year’s P12.1 billion, in the 2026 National Expenditure Program.

A breakdown of the proposed CIF shows that the Office of the President would get the lion’s share with P4.5 billion, followed by the Department of National Defense with P1.8 billion.

Castro also dismissed criticism from former Finance undersecretary Cielo Magno, who questioned the President’s moral authority to request a large CIF allocation.

The misuse of confidential funds was one of the charges against Vice President Sara Duterte in 2022 and became a basis for her impeachment.

Confidential expenses, according to a 2015 joint circular, pertain to surveillance activities in civilian government agencies, while intelligence expenses are those related to intelligence information-gathering activities of uniformed and military personnel that have a direct impact on national security.

“As I have said earlier, the president is the commander-in-chief, and if there is talk of a lack of moral ascendancy, let us remember that if the reporting is done properly and the funds are used appropriately, this will not be questionable,” Castro said.

“Comparisons only arise when the reporting is not done correctly and various certificates or receipts are used merely to claim that the confidential funds were spent — that’s the difference,” she added.

Castro also justified the P17-billion budget for the hosting of the Association of Southeast Asian Nations (Asean) Summit next year, saying “the expenses will indeed be substantial because we will be hosting the Asean Summit.”

She also said there was a need to adequately fund the President’s local and foreign trips because these are necessary.

“We can clearly see that the president often travels to inspect security and to monitor what is happening in our country — whether there are floods or disasters — so that is also necessary,” Castro said.

“You can also observe that the president frequently travels abroad to encourage other countries to invest here in our nation,” she added.

Castro also asked the camp of the vice president to explain the alleged use of military certifications to justify P15 million in confidential intelligence fund expenses.

Michael Poa, one of the 16-member defense team for the vice president’s impeachment case, said their camp was ready to address the issues in the “proper forum.”

The reason for the controversy is for the controversy.

She said the DBM found that only P13 billion of AKAP’s P27-billion allocation for 2025 had been used so far by the Department of Social Welfare and Development.