DBM: Agency spending in Sept. fastest in 6 months

MANILA, Philippines -- State agencies accelerated spending to their fastest in six months in September, tapping parked funds that bolster chances economic growth was sustained last quarter.

A total of P213.45 billion worth of notices of cash allocation (NCA) were used last month, representing a 119-percent utilization rate, data from the Department of Budget and Management (DBM) showed.

The rate -- which measures NCA used over those DBM released -- marked the highest since March's 123 percent. 

A ratio of more than 100 percent means agencies have unused NCAs from previous months.

NCAs are given to the Bureau of the Treasury to get checks for payment of projects and services. Once utilized, funds are deemed disbursed.

"The policy of this government is 'use it or lose it,' meaning use the funds or lose your job," Budget Secretary Benjamin Diokno told a forum before data was released.

Budget Undersecretary Laura Pascua, meanwhile, said NCAs could be used for six months from their issuance, after which they are deemed revoked.

"If (agencies) are late in procurement or have problems in hiring or problems in implementing projects...,that can cause NCAs for the month to lapse then they have to use next month's allocation," she said in a text message on Thursday.

Pascua earlier said transition in government has not resulted in a slowdown in spending.

The Duterte administration vowed to speed up expenditures to support growth, following sporadic underspending during the previous government.

As of the third quarter, data showed a total of P1.48 trillion of NCAs were used, equivalent to 94.72 percent of P1.56 trillion released during the period.

Broken down, P1.44 trillion was already paid to contractors, while P37.56 billion was still in the form of checks waiting to be encashed. 

By agency, the Department of Public Works and Highways -- the main infrastructure body -- recorded the highest utilization rate of 99 percent in the Executive branch.

Still, more than P202 billion remains with agencies which Pascua said could still be used for succeeding months.

Sought for comment, Emilio Neri Jr., lead economist of Bank of the Philippine Islands, still tempered hopes by Socioeconomic Planning Secretary Ernesto Pernia that growth settled "at least seven percent" last quarter.

Growth, as measured by gross domestic product, hit seven percent in the second quarter, the fastest in nearly three years.

"While state spending is strong, it was unlikely to offset election spending, which was both public and private expenditures," Neri said in a phone interview.

"We could still see some slowdown in growth on quarter-on-quarter basis, although faster than last year," he added.