October 23, 2024 | 12:00am
MANILA, Philippines — The government increased its releases of cash allocations with the spending usage of state agencies remaining in a high mode in the third quarter.
Data from the Department of Budget and Management (DBM) showed that notices of cash allocation (NCAs) rose by 11 percent to P3.52 trillion as of end-September from P3.18 trillion in the same period last year.
Even with the increase, government agencies recorded a higher utilization rate of 99 percent from 97 percent in the nine-month period in 2023.
This means that of the total releases, only P51.6 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.
About 75 percent of NCA releases were secured by line departments at P2.64 trillion.
The remaining P873.78 billion was directed to other agencies, especially state-run firms and local governments.
By sector, other agencies managed to utilize 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 98 percent or P2.59 trillion for the NCAs they received as of end-September. Same period last year, the spending rate was at 97 percent.
By departments, the Department of Public Works and Highways (DPWH) and the Department of Education (DepEd) still obtained the highest NCAs worth P726.57 billion and P485.09 billion, respectively, in the nine-month period.
Data showed that DPWH managed to utilize its entire allocation while DepEd used up 98 percent.
Apart from DPWH, the Departments of Interior and Local Government, Labor and Employment, Social Welfare and Development, 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 departments of Health, National Defense, Science and Technology, Tourism, Transportation and National Economic and Development Authority, as well as state colleges and universities.
The DBM registered the worst utilization rate as of September at only 73 percent of its NCAs totaling P1.48 billion out of the P2.02 billion allocation.
The Department of Migrant Workers came in second with a utilization rate of 78 percent at P6.84 billion out of P8.8 billion, while the Office of the Vice President was third with a spending rate of 80 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.
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