DBM urges agencies to ramp up spending

MANILA, Philippines — The Department of Budget and Management (DBM) is urging government agencies to further ramp up their spending of the 2024 budget to improve the delivery of public goods and services.

The top spenders of the 2024 budget as of June 30 are the following: Office of the Presidential Adviser on Peace, Reconciliation and Unity, National Intelligence Coordinating Agency, Department of Public Works and Highways, Department of Finance, Department of Foreign Affairs, Department of the Interior and Local Government, Commission on Elections, Department of National Defense, Department of Transportation and the Department of Agriculture.

Meanwhile, the 10 agencies with the lowest utilization rates are the Department of Justice, Office of the Vice President, Department of Labor and Employment, Office of the President, Philippine Sports Commission, Department of Energy, Department of Human Settlements and Urban Development, Department of Migrant Workers, Commission on Higher Education and Congress.

At the Senate finance committee’s deliberations on the proposed 2025 national budget on Tuesday, DBM Secretary Amenah Pangandaman said 65.4 percent of the P5.652-trillion allotment from the 2024 national budget and 2023 continuing appropriations has been obligated. 
Out of the P5.6-trillion allotment, some P4.1 trillion has been released to national government agencies to implement their programs and projects, 53.8 percent of which has been obligated, Pangandaman said.

“High budget utilization rate reflects the agency’s absorptive capacity to utilize additional funds,” she said.

The DBM has issued a circular requiring agencies with low obligation rates to submit their respective catch-up plans, according to Pangandaman.

“Meanwhile, a low budget utilization rate reflects the agency’s limited capacity to spend more funds, hence just last month, we issued circular letter 2024-12 requiring agencies with low obligation rates to submit their respective catch-up plans to improve the delivery of public goods and services,” she said.

For 2025, the proposed national budget is set at P6.352 trillion, which is 10.1 percent higher than this year’s P5.758-trillion outlay.

The sectors getting the lion’s share of the proposed budget for next year include education, public works, health, interior and local government and defense.