Spending rate of state firms slows to 83%

MANILA, Philippines — State agencies recorded a lower spending rate as of February following adjustments done by Congress that President Marcos placed under conditional implementation.

Latest data from the Department of Budget and Management  showed that notices of cash allocation (NCAs) rose  by 16.5 percent to P710.86 billion as of end-February from P609.96 billion in the same month last year.

Despite the higher releases, agencies recorded a lower utilization rate of 83 percent from 88 percent in the comparative period.

This also means that of the total releases, P586.66 billion was utilized and some P124.2 billion was unused as of last month.

NCAs are disbursement orders issued 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.

Budget Undersecretary Goddes Libiran said that this was due to Congress-Introduced Changes and Adjustments (CICAs) to the national budget.

“Last year, there were no significant CICAs, which needed to be covered by a separate SARO (special allotment release order), thus, 77 percent had been comprehensively released,” Libiran said in a Viber message.

“For 2025, a total of P757 billion CICAs, involving 12,770 programs, activities and projects have been placed under conditional implementation consistent with the President’s veto message,” she said.

As such, a section of the veto message requires a SARO for all Congressional insertions before funds can be disbursed.

SAROs can only be released once requirements and approvals from the Office of the President are secured.

Data showed that 70 percent of NCA releases were secured by line departments at P497.86 billion. The remaining P213 billion was directed to other agencies, especially state-run firms and local governments.

By sector, line departments registered a utilization rate of 76 percent or P376.49 billion for the NCAs they received as of February. This is lower than the 81 percent recorded last year.

Other agencies used up 99 percent of their allocation largely to cover the internal revenue allotment, special shares and other transfers for LGUs.

By departments, the Department of Public Works and Highways and the Department of Education obtained the highest NCAs worth P112.15 billion and P101.75 billion, respectively, as of February.