DBM eyes quick release of 2024 budget

MANILA, Philippines — The Department of Budget and Management (DBM) targets to issue all special allotment release orders (SAROs) as early as the first quarter of next year to ensure that state agencies expedite their utilization.

In a briefing on the 2024 National Expenditure Program yesterday, Budget Secretary Amenah Pangandaman said several agencies suffered from a budget cut for next year following their low utilization rate.

As such, the DBM is reviewing the process of budget execution for next year’s record-high P5.768 trillion budget.

“What we are planning is that all SARO will be released by the first quarter and then we will just be strict on the NCAs (notice of cash allocation),” Pangandaman said.

SARO is issued to agencies so they will incur obligations not exceeding a given amount during a specified period for the purpose indicated.

NCAs, on the other hand, are cash authorities issued quarterly by the DBM to central, regional and provincial offices and operating units to cover the cash requirements of the agencies.

As of now, state agencies are recording low budget utilization, which is being flagged by the economic team as this could impact growth this year.

Budget Undersecretary Leo Angelo Larcia said the DBM would form a technical working group to review the budget execution process.

“Basically, we want to expedite the release of funds in line with the PDP (Philippine Development Plan),” Larcia said.

“We will have until the end of the year to review the process,” he said.

Pangandaman explained that the DBM wants to release the budget for all items listed in the upcoming General Appropriations Act to allow agencies to bid out projects and procure and prepare for other programs.

“Some agencies cannot bid because they do not have the SARO yet, so we will try to give it. Hopefully they will be able to finish their planning (early),” Pangandaman said.

Certain programs are also inserted by Congress during budget deliberations, for which agencies have yet to prepare.

Apart from the review of budget execution, the DBM will also push for early procurement as well as the catch-up plan of departments.

Pangandaman said that several agencies recorded lower budget proposals for next year, particularly the Department of Information and Communications Technology (DICT), with P1 billion in budget cuts.

During the budget call in June, Pangandmaan said the DICT was able to utilize merely seven percent of its total budget this year.

Among the other agencies with budget reductions for next year are the Department of Agrarian Reform, Department of Public Works and Highways and the Department of Health.

Congress will start deliberations on Thursday, starting with the Cabinet-level Development Budget Coordination Committee.