DBM eyes digitalization of budget releases in Q1

MANILA, Philippines — The government expects to fully digitalize the manner of releasing budget allocation to various agencies by the first quarter of 2023.

The Department of Budget and Management is ramping up its digitalization efforts especially with the release of action documents including special allotment release orders, notices of cash allocation (NCA), and notices of organization, staffing, and compensation action.

Budget chief Amenah Pangandaman said the move is part of the government’s digital transformation initiative toward achieving bureaucratic efficiency.

She said digitalizing would also reduce the cost of doing business and promote transparency and accountability.

Under the 2023 budget recently signed by President Marcos, some P300 billion has been earmarked for the digitalization program of the various national government agencies.

DBM, for its part, already started with its digital transformation initiatives after it inked a deal with three authorized government servicing banks for the implementation of the online release of NCAs.

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.

“Through the digital initiative, we will be able to save millions worth of expenses by reducing costs on security paper, printing, supplies, and transportation expenses for physical claiming of documents by agency representatives,” Pangandaman said.

“So, we don’t have to print the papers. So, hopefully, until the first quarter of next year, all DBM releases will be digital, no more hard copies,” she said.

The online release of the NCAs will be carried out through the DBM’s Action Document Releasing System (ADRS), a web-based application that facilitates the release of approved DBM action documents in digital format directly to the authorized users of recipient agencies.

The issuance of NCAs is the most fundamental aspect of budget execution in the Philippines.

It undertakes almost all public sector disbursements and serves as a primary means by which the national government exercises budgetary control and oversight.

Thus, this is considered to be among the most critical processes to digitalize amid the digital transformation push in the public sector.

As to how the DBM will ensure digital processes will be free from criminal or unauthorized use, Pangandaman said the agency is also investing in the cybersecurity part of the system.