DBM releases 91% of 2020 budget

MANILA, Philippines — About 91 percent of this year’s P4.1 trillion national budget has been released to state agencies as of the end- May, according to the   Department of Budget and Management (DBM).

According to latest data from DBM, allotment releases in the first   five months  have already reached P3.736 trillion, leaving P363.99 billion in the hands of the agency.

This translated to an allocation rate of 91.1 percent, higher than the 79.6 percent recorded in the same period last year when there was a delay in the passage of the 2019 General Appropriations Act (GAA).

Allotment releases issued by the DBM enable agencies to incur obligations to finance the delivery of projects and services, such as education, health care, poverty alleviation and infrastructure development.

Of the   amount,   the DBM said P2.074 trillion went to departments and other agencies, accounting for 87.4 percent of the revised program of P2.37 trillion.

Budget Undersecretary Laura Pascua said the program was cut from the original budget of P2.38 trillion as the Rice Competitiveness Enhancement Fund (RCEF) was reallocated under a special account in the General Fund.

“It (RCEF) was removed from the Department of Agriculture (DA) to be treated as an automatically appropriated special account,” Pascua said in a text message.

Another P228.66 billion was also released from Special Purpose Funds (SPFs), 49 percent of the adjusted P466.46 billion program.

The budget for SPFs declined by P1.44 billion from the original program of P467.9 billion as budgetary support to government corporations was slashed by P5.08 billion.

This was partially offset by the P3.65 billion savings generated from the discontinuance of projects pursuant to Section 4(v) of Republic Act 11469 or the Bayanihan to Heal as One Act.

On the other hand, the program for automatic appropriations rose to P1.26 trillion from the previous level of P1.25 trillion. The DBM said allotment releases for automatic appropriations amounted to P1.25 trillion, 99.4 percent of the adjusted program.

DBM data also indicated that other releases reached P181.33 billion as of end-May.

Meanwhile, DBM data showed that some agencies suffered budget cuts this year as the government realigned funds for coronavirus disease 2019 (COVID-19) response.

Among them is the Department of Public Works and Highways (DPWH), which incurred the highest reduction amounting to P122.94 billion. This brought the agency’s budget to P457.95 billion from P580.89 billion.

This was followed by the Department of Education (DepEd), which sustained P21.86 billion in budget cuts. As a result, the agency’s budget has been lowered to P499.49 billion from P521.35 billion.

About P13.9 billion was also taken from the Commission on Higher Education’s budget, reducing its funds to P32.88 billion from P46.78 billion.

On the other hand, some agencies also had their budgets increased, particularly those involved in COVID-19 response.

The Department of Social Welfare and Development’s budget was augmented by P165.23 billion, bringing its total funds to P329.04 billion.

The Department of Finance (DOF) also received an additional P35.26 billion, followed by the Department of Labor and Employment and the Department of Health with P2.48 billion and P1.91 billion in augmentations, respectively.