THE SUPREME COURT on Tuesday questioned whether transferring already funded foreign-assisted projects to unprogrammed appropriations merely creates an “artificial” fiscal space in the national budget, as reported by BusinessWorld.
The government had argued that such reclassification is deficit-neutral, as the projects are already funded and moving them to unprogrammed appropriations does not increase the overall budget deficit. However, the High Court expressed doubt, suggesting that the maneuver might be creating an illusion of fiscal space rather than reflecting genuine savings or new revenue.
The case is part of ongoing scrutiny over budget transparency and the use of unprogrammed funds, with potential implications for future appropriations and the government's fiscal reporting. No immediate ruling was issued, and the Court is expected to continue hearings on the matter.