English
Philippines: Budget releases slow down; agencies spend more in February
MANILA, Philippines — The government slightly slowed down in its releases of cash allocations but state agencies managed to increase their utilization rate as of February following the record P5.268-trillion budget this year.
Latest data from the Department of Budget and Management (DBM) showed that notices of cash allocation (NCAs) went down by five percent to P527.46 billion as of end-February from P554.01 billion a year ago.
However, the utilization rate still slightly improved to 86 percent from 85 percent in the same period in 2022.
This means that of the total releases, P451.09 billion was utilized and some P76.37 billion was unused as of last month.
NCAs are disbursement orders by the DBM to government banks servicing the release of funds to agencies. State agencies are expected to use the NCAs to pay for the cash requirements of their programs and projects.
A higher utilization ratio indicates greater capacity of agencies to implement their programs and projects.
Nearly 70 percent of NCA releases were secured by line departments at P363.09 billion. The remaining P164.37 billion was directed to other agencies, especially state-run firms and local governments.
By sector, other agencies managed to use up the entire allocation for them to cover the internal revenue allotment, special shares and other transfers for LGUs.
Line departments, on the other hand, registered a better utilization rate of 79 percent or P287.39 billion for the NCAs they received as of end-February. Same period last year, the spending rate was 77 percent.
By departments, the Department of Education (DepEd) and the Department of Public Works and Highways (DPWH) still obtained the highest NCAs worth P89.99 billion and P68.97 billion, respectively, in February.
Data showed that DepEd used 86 percent of its NCAs, but the DPWH only managed to spend a little over 70 percent of its allocation.
The DBM said the Department of Energy and the Commission on Elections both recorded a 100 percent utilization rate during the two-month period.
As of February, more agencies have posted above 90 percent utilization of their NCAs including the DBM and the Departments of Foreign Affairs, Justice, National Defense and Trade and Industry.
Also included are the National Economic and Development Authority, Office of the Press Secretary and the Commission on Human Rights.
Meanwhile, the Department of Migrant Workers registered the worst utilization rate in February at only 38 percent of its NCAs totaling P845.46 million out of the P2.23 billion allocation.
The Department of Labor and Employment came in second with a utilization rate of 47 percent at P2.5 billion out of P5.31 billion, while the Department of Social Welfare and Development was next with 53 percent at P9.74 billion out of the P18.27 billion released.
Last year, the DBM released a record P4.42 trillion worth of NCAs as the government expedited programs and projects that could help the country recover from the pandemic.
Source: https://www.philstar.com/business/2023/03/24/2254041/budget-releases-slow-down-agencies-spend-more-february