Gov’t releases 85.5% of national budget

MANILA, Philippines — The government has released P3.13 trillion in funds to line agencies as of end-June this year to support their programs and operations, according to the Department of Budget and Management (DBM).

The DBM said the amount released accounted for 85.5 percent of the P3.66 trillion 2019 national budget.

“The immediate release of funds by the DBM will ensure that national government agencies are able to swiftly implement their programs and projects, such as the construction of new roads, schools, and hospitals, and the protection and promotion of the welfare of the poor and marginalized sectors, among others,” the agency said.

Of the total amount, the DBM said P1.88 trillion came in the form of allotment releases to line departments, including those in the executive branch, Congress, the judiciary and other constitutional offices.

In addition, fund releases from the Special Purpose Fund (SPFs) amounted to P159.8 billion. These include budgetary allocations for specific socio-economic purposes, such as budgetary support to state corporations, allocation to local government units, contingent fund, miscellaneous personnel benefits fund, national disaster risk reduction and management fund, and the pension and gratuity fund.

Meanwhile, the DBM has also released about P1.05 trillion for automatic appropriations in the first half, covering requirements for internal revenue allotments, net lending, interest payments, and others.

Releases for continuing appropriations also reached P8.4 billion as of end-June, according to the agency. These refer to appropriations available to support programs or projects that require the incurrence of obligations beyond one fiscal year.

“Moreover, unprogrammed appropriations in the amount of P24.1 billion have been released for the foreign-assisted projects of the Department of Transportation, and for the payment of pension adjustments of the military and uniformed personnel under the Armed Forces of the Philippines – General Headquarters, Philippine National Police, Bureau of Fire Protection, and Bureau of Jail Management and Penology,” the DBM said.

Unprogrammed appropriations include additional agency expenditures for priority programs and projects authorized when revenue collections exceed the resource targets or when additional grants or foreign funds are generated.

Earlier, the DBM said government spending is already expected to normalize following the signing of the 2019 General Appropriations Act in April.

The government was forced to operate on a reenacted budget in the first quarter of the year due to the delay in the approval of the 2019 budget, resulting in a decline in public spending.

The DBM said government agencies would now be able to proceed with the award of contracts and start the implementation of projects, and implement catch up measures to minimize the impact of the budget delay.