Budget releases up, utilization steady in Q1

MANILA, Philippines —  The government increased its releases of cash allocations with state agencies registering a steady utilization rate as of the first quarter following this year’s record P6.326-trillion budget.

Latest data from the Department of Budget and Management (DBM) showed that notices of cash allocation (NCAs) jumped by 17.8 percent to P1.13 trillion from January to March compared to last year’s  P959.74 billion.

The utilization rate, however, remained at 99 percent, the same level as last year.

This means that of the total releases, P1.12 trillion was utilized and only some P8.57 billion was unused as of end-March.

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 a greater capacity of agencies to implement their programs and projects.

Data showed that line departments secured over 70 percent of NCA releases at P804.6 billion. The remaining P325.81 billion went to other agencies, especially state-run firms and local governments.

Other agencies managed to use up the entire allocation to cover the internal revenue allotment, special shares and other transfers for LGUs.

On the other hand, line departments registered the same utilization rate of 99 percent or P797.38 billion for the NCAs they received as of end-March.

By departments, the Department of Public Works and Highways (DPWH) and the Department of Education (DepEd) still obtained the highest NCAs worth P207.52 billion and P156.29 billion, respectively, in the first quarter.

Data showed that DepEd fully utilized its entire allocation for the period while DPWH used 99 percent of its NCAs.

Other agencies that recorded a 100 percent utilization rate in the first quarter include the departments of Foreign Affairs, Health, Interior and Local Government, Labor and Employment, Migrant Workers, Social Welfare and Development, Tourism and the Department of Economy, Planning and Development.

Also included are the Office of the Vice President, the Judiciary, the Civil Service Commission, the Commission on Audit, the Commission on Elections, the Office of the Ombudsman, and the Commission on Human Rights, as well as state universities and colleges.

On the other hand, the Department of Human Settlements and Urban Development registered the worst utilization rate in the first quarter at 78 percent of its NCAs, totaling P510.5 million out of the P651.37 million allocation.

The Department of Agriculture came in second with a utilization rate of 85 percent at P10.37 billion out of the P12.24 billion. The Department of Energy was next with 87 percent at P474.67 million out of the P544.03 million released.

Last year, the DBM released a record P4.9 trillion worth of NCAs, primarily to finance infrastructure projects and the education sector.