DPWH fund utilization remains sluggish

MANILA, Philippines — Despite bigger cash allocations to state agencies in the first seven months of the year, spending rate turned out to be uneven during the period, with the Department of Public Works and Highways (DPWH) – currently at the center of the flood control scandal – posting sluggish utilization.

Data from the Department of Budget and Management (DBM) showed that notices of cash allocation (NCAs) rose by 4.7 percent to P3.13 trillion as of end-July from P2.99 trillion in the same period last year.

Even with the increase, government agencies posted only slightly higher utilization rate of 94.6 percent from 94 percent in the seven-month period in 2025.

Of the total releases, P2.96 trillion had been utilized, leaving P169.94 billion 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.

Line departments accounted for about 69 percent of total NCA releases, receiving P2.16 trillion. The remaining P969.11 billion was directed to other agencies, especially state-run firms and local governments.

Departments registered a utilization rate of 92.2 percent, using P1.99 trillion of the P2.16 trillion for the NCAs they received as of end-July. In the same period last year, the spending rate was only 92 percent.

The Department of Education (DepEd) received the largest NCA among line departments at P513.94 billion, followed by the DPWH with P320.13 billion. Both departments recorded lower utilization rates than a year earlier.

The DPWH utilized 86.2 percent of its NCA as of end-July, down from 94 percent a year earlier. The slower utilization comes as the agency faces heightened scrutiny over its infrastructure spending amid the flood-control controversy.

The DPWH has tightened the review, audit and validation of payment claims for infrastructure projects, as well as documentary compliance requirements for contractors.

DepEd, meanwhile, utilized 93.1 percent of its NCA, down from 97 percent a year earlier.

No line department recorded a full 100 percent utilization rate during the period.

Some of the agencies that recorded above 90 percent utilization rates were the Office of the Vice President and Commission on Audit, followed by the Department of Foreign Affairs and the Department of Energy.

The Office of the President posted the lowest utilization rate among departments and offices, using 69.4 percent of its P10.68 billion NCA, or about P7.41 billion, as of end-July.

The Presidential Communications Office had a utilization rate of 72 percent, while the Department of Labor and Employment and Department of Agriculture posted rates of 76.8 percent and 79.4 percent, respectively.