MANILA, Philippines — The government increased its releases of cash allocations, with state agencies remaining in a higher spending mode in the first half of the year.
Data from Department of Budget and Management (DBM) showed that notices of cash allocation (NCAs) rose by almost 10 percent to P2.26 trillion as of end-June from the P2.06 trillion in the same period last year.
Even with the increase, government agencies recorded a slightly higher utilization rate of 99 percent, from 98 percent in the six-month period in 2023.
This means that of the total releases, some P21.93 billion was unused as of end-June.
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.
As the DBM readies the submission of the record P6.352-trillion budget for 2025, Budget Secretary Amenah Pangandaman earlier said the current utilization rate of agencies was taken into consideration in next year’s budget proposal.
Almost 75 percent of NCA releases were secured by line departments at P1.68 trillion. The remaining P580.98 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 99 percent or P1.65 trillion for the NCAs they received as of end-June. Same period last year, the spending rate was only 97 percent.
By departments, the Department of Public Works and Highways (DPWH) and the Department of Education (DepEd) still obtained the highest NCAs worth P454.91 billion and P309.86 billion, respectively, in the six-month period.
Data showed that DPWH was consistent in utilizing 100 percent of its NCAs while DepEd registered a slightly lower spending rate of 99 percent from full utilization last year.
Other agencies that recorded a 100 percent utilization rate include the Departments of Interior and Local Government, Labor and Employment, Social Welfare and Development and Transportation, as well as the Judiciary, Civil Service Commission, Commission on Audit, Commission on Elections, Office of the Ombudsman and the Commission on Human Rights.
On the other hand, the Department of Migrant Workers still registered the worst utilization rate as of June at only 64 percent of its NCAs totaling P3.55 billion out of the P5.51 billion allocation.
Ironically, the DBM came in second with a utilization rate of 69 percent at P1.02 billion out of P1.47 billion, while the Office of the Vice President came in third with a spending rate of 74 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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