MANILA, Philippines — The government ramped up its releases of cash allocations but state agencies remained in a lower spending mode as of the end of July.
Data from Department of Budget and Management (DBM) showed that notices of cash allocation (NCAs) increased by 2.65 percent to P2.5 trillion as of end-July from the P2.44 trillion in the same period last year.
Despite the increase, government agencies recorded a slightly lower utilization rate of 92 percent from 94 percent in the seven-month period last year.
This means that of the total releases, some P194.19 billion was unused as of end-July.
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 greater capacity of agencies to implement their programs and projects.
Almost 75 percent of NCA releases were secured by line departments at P1.84 trillion. The remaining P659.29 billion was directed to other agencies, especially state-run firms and local governments.
By sector, other agencies managed to use up the entire allocation for them to cover the internal revenue allotment, special shares and other transfers for LGUs.
Line departments, on the other hand, registered a lower utilization rate of 90 percent or P1.65 trillion for the NCAs they received as of end-July. The spending rate was higher at 93 percent in the same period last year.
The Department of Public Works and Highways (DPWH) and the Department of Education (DepEd) still obtained the highest NCAs worth P506 billion and P362.29 billion, respectively.
Data showed that DPWH managed to utilize 89 percent of their allocation while DepEd used up 95 percent.
Only the Commission on Audit recorded a 100 percent utilization rate.
Other agencies that posted above 95 percent usage rate include the DBM and the departments of Finance, Health, Interior and Local Government, Justice, Trade and Industry, as well as the Commission on Elections and the Commission on Human Rights.
On the other hand, the Department of Migrant Workers still registered the worst NCA utilization rate as of July at only 41 percent of its NCAs totaling P3.51 billion out of the P8.56 billion allocation.
The Department of Information and Communication Technology came in second with a utilization rate of 55 percent at P2.85 billion out of P5.17 billion while the Department of Agriculture is at third with a spending rate of 68 percent.
Last year, the DBM released a record P4.42 trillion worth of NCAs as the government expedited programs and projects that could help the country recover from the pandemic.