DBM: Only 5% of budget unreleased, but spending still slow
December 9, 2016 | 3:20pm
According to DBM data, P1.56 trillion in funds were released to agencies as of November, accounting for 96.5 percent of a total P1.62 trillion. File photo
MANILA, Philippines — Only around five percent of the national budget has yet to be released with just a month left in the year, again putting the burden on agencies to spending as much funds as possible.
A total of P2.84 trillion, or 94.6 percent, of the P3.002-trillion outlay were already in the hands of state departments and entities, data from the Department of Budget and Management showed.
The figure, however, was down from 96.4 percent in the same period a year ago.
DBM officials did not respond to requests for comment, but Budget Secretary Benjamin Diokno reiterated last week a pledge to spend faster under the Duterte administration.
"We have tweaked our fiscal policy to secure these ambitions...This will allow adequate funding for our expenditure priorities," Diokno said in a speech during a forum in Makati on November 29.
"But let me assure you that we will exercise fiscal responsibility. The planned deficit is manageable, appropriate, and sustainable," he added.
For Emilio Neri Jr., lead economist at Bank of the Philippine Islands, line agencies will again have to step up in disbursing funds.
"I guess there will still be pressure for agencies to spend fast," Neri said in an e-mail.
The Duterte administration vowed to speed up spending after it criticized the previous government of falling below targeted outlays despite the country's huge infrastructure needs.
With much funds already with agencies, contracts for products and services may now be entered into to ensure they will be funded even with a new budget next year.
Separate DBM data showed much will need to be done on this front, with the obligation rate only at 64.2 percent or P1.06 trillion as of the third quarter.
The budget process involves allocation, obligation and actual spending. Once obligated, disbursements follow and only once it happens that spending is recorded in government balance sheet.
"It is very possible that their absorptive capacity was too dependent on approval of emergency powers," Neri said.
"Other agencies may be due to inability to fill up still vacant positions in govt and publicly owned corporations," he said.
Earlier, Socioeconomic Planning Secretary Ernesto Pernia urged Congress to give emergency powers to the Department of Transportation to skirt procurement processes to bid projects faster.
The bill containing such powers had been stuck in committee level over some questions.
According to DBM data, P1.56 trillion in funds were released to agencies as of November, accounting for 96.5 percent of a total P1.62 trillion.
More than P318 billion was in the form of special purpose funds or lump sum funds for specific projects. They account for 70.6 percent of total.
The balance of P893.71 billion or 96 percent of the P930.7-billion allocation are in the form of automatic appropriations, including debt payments and pension.
In terms of obligated funds however, DOT had the second highest rate of 42.4 percent as of September, up from 33.66 percent last year.
The Department of Public Works and Highways led the pack with a rate of 66.9 percent, data showed.
"Building (infrastructure), as you are aware, has the highest multiplier effect on the economy," Finance Secretary Carlos Dominguez said during another forum held last week.
"This government means business and is determined to work hard to get things done," Dominguez said.
BrandSpace Articles
<
>
Philstar
x
- Latest
- Trending
Trending
Latest
Trending
By Louise Maureen Simeon | 9 hours ago
By Keisha Ta-Asan | 9 hours ago
By Boo Chanco | 1 day ago
By Elijah Felice Rosales | 2 days ago
Latest
By Richmond Mercurio | 9 hours ago
By Francis J. Kong | 9 hours ago
By Louella Desiderio | 9 hours ago
By Louella Desiderio | 9 hours ago
Recommended
23 hours ago
