State agencies post better spending rate in 8 months

MANILA, Philippines — The government ramped up the releases of cash allocations, with state agencies remaining in a higher spending mode from January to August compared to a year agp.

Data from Department of Budget and Management (DBM) showed that notices of cash allocation (NCAs) grew by almost 10 percent to P3.12 trillion as of end-August from P2.85 trillion in the same period last year.

Even with the increase, government agencies recorded a slightly higher utilization rate of 95 percent from 93 percent in the eight-month period in 2023.

This means that of the total releases, some P161.97 billion was unused as of end-August.

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.

About 75 percent of NCA releases were secured by line departments at P2.35 trillion. The remaining P773.48 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 93 percent or P2.19 trillion for the NCAs they received as of end-August. In the same period last year, the spending rate was only 91 percent.

By departments, the Department of Public Works and Highways (DPWH) and the Department of Education (DepEd) still obtained the highest NCAs worth P646.18 billion and P421.62 billion, respectively, during the the eight-month period.

Data showed that DepEd registered a slightly lower utilization of 95 percent from 96 percent last year, while DPWH recorded a higher spending rate of 95 percent from 90 percent.

Only the Commission on Audit posted a 100-percent spending rate.

Other agencies that recorded above 90-percent utilization rate are the departments of Foreign Affairs, Health, Interior and Local Government, Justice, National Defense, Social Welfare and Development as well as the National Economic and Development Authority and Commission on Human Rights as well as state universities and colleges.

Ironically, the DBM registered the worst utilization rate as of August at only 73 percent of its NCAs totaling P1.31 billion out of the P1.79 billion allocation.

The Department of Migrant Workers came in second with a utilization rate of 74 percent at P6.05 billion out of P8.2 billion, while the Office of the Vice President is in third with a spending rate of 75 percent.

Last year, the DBM released a record P4.45 trillion worth of NCAs as the government expedited programs and projects that could help the country recover from the pandemic.