MANILA, Philippines — The government increased its releases of cash allocations, but spending usage of state agencies remained low as of the end of the third quarter.
Data from the Department of Budget and Management (DBM) showed that notices of cash allocation (NCAs) inched up by two percent to P3.18 trillion as of end-September from the P3.11 trillion in the same period last year.
Despite the increase, government agencies recorded a slightly lower utilization rate of 97 percent from 98 percent in the nine-month period in 2022.
This means that of the total releases, some P83.54 billion was unused as of end-September.
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.
Almost 75 percent of NCA releases were secured by line departments at P2.33 trillion. The remaining P847.43 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 lower utilization rate of 97 percent or P2.25 trillion for the NCAs they received as of end-September. Same period last year, the spending rate was higher at 98 percent.
By departments, the Department of Public Works and Highways (DPWH) and the Department of Education (DepEd) still obtained the highest NCAs worth P613.11 billion and P455.64 billion, respectively, during the nine-month period.
Data showed that DPWH managed to utilize its entire allocation while DepEd used up 98 percent.
Apart from DPWH, the Department of Interior and Local Government, the Judiciary, Civil Service Commission, Commission on Audit, Commission on Elections, Office of the Ombudsman, and the Commission on Human Rights also recorded a 100 percent utilization rate.
Other agencies that posted above 95 percent usage rate include the DBM and the departments of Energy, Environment and Natural Resources, Finance, Foreign Affairs, Health, Justice, National Defense, Trade and Industry, Transportation, National Economic and Development Authority, Office of the Press Secretary, as well as state colleges and universities.
On the other hand, the Department of Information and Communication Technology (DICT) and the Department of Migrant Workers (DMW) registered the worst NCA utilization rate as of September, both at 40 percent.
DICT only spent P3.55 billion out of its P8.94 billion NCAs released while DMW used up P4.38 billion out of P10.83 billion allocation.
The Department of Tourism came in second with a utilization rate of 75 percent at P1.91 billion out of P2.55 billion while the Department of Agriculture is at third with a spending rate of 77 percent.
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.