MANILA, Philippines — The government has increased the release of notices of cash allocation (NCAs) and improved its utilization rate in the first semester following the record P5.02-trillion budget for this year.
Latest data from the Department of Budget and Management (DBM) showed that NCA releases as of the end of the second quarter improved by five percent to P2.03 trillion from P1.94 trillion in the same period last year.
In the second quarter alone, NCA issuances went up by 1.87 percent to P1.15 trillion.
In turn, the utilization rate for NCAs improved to 99 percent in the first half of 2022 from just 97 percent in 2021. Most agencies recorded above 90 percent utilization rate, with 12 departments able to use up all of their NCAs.
Nearly 70 percent of NCA releases were secured by line departments at P1.42 trillion. The remaining 30 percent or P617.84 billion was allocated to government-owned and controlled corporations (GOCCs) and local government units (LGUs).
With a 99 percent rate, the government utilized P2.009 trillion of the NCAs released in the first semester while P24.22 billion was unused for January to June this year.
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.
Based on DBM data, agencies that posted a 100 percent utilization of their NCAs include the Office of the Vice President as well as the Departments of Education, Foreign Affairs, Health, Interior and Local Government, and National Defense.
Also included are the Department of Transportation, the Judiciary, Civil Service Commission, Commission on Audit, Office of the Ombudsman, and the Commission on Human Rights. Allocations to GOCCs and LGUs were likewise fully utilized during the period.
On the other hand, the Department of Information and Communications Technology recorded the lowest utilization rate at 63 percent.
The Department of Labor and Employment, Department of Tourism and the Commission on Elections also posted below 90 percent utilization rate.