BUDGET utilization improved in March as government agencies accelerated spending in the wake of last year’s corruption scandal.
At 98.5 percent, utilization was markedly higher than February’s 87 percent but was slightly lower than the year-earlier 99 percent, data from the Department of Budget and Management (DBM) showed.
A notices of cash allocation (NCA) report showed that the national government, along with local governments and state-owned enterprises, had used P1.22 trillion out of the P1.24 trillion approved as of end-March.
NCAs, which are issued by the DBM, allow agencies to access funds from the Bureau of the Treasury for their respective expenditure requirements.
Government departments utilized P749.19 billion, or 97.5 percent, of their allotted funds, leaving about P19.1 billion left of the P768.3-billion allocation. The rate was lower than the 99 percent a year earlier.
Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the pickup in utilization was mainly due to “catch‑up effect,” noting that “once allotments are cleared and procurement issues ease after Q1, agencies move faster.”
“What we’re seeing now is the government deliberately turning budgets into actual spending, particularly on infrastructure and social services, to support growth amid global uncertainty,” he added.
Six agencies achieved a 100-percent budget utilization rate: the Department of Agrarian Reform, Civil Service Commission, Commission on Audit, Commission on Elections, Office of the Ombudsman and the Commission on Human Rights.
The Presidential Communications Office registered the lowest utilization rate of 58.2 percent.
Other agencies with relatively lower utilization rates included the Department of Economy, Planning and Development at 84.5 percent and the Department of Trade and Industry at 86.3 percent.
“Looking ahead, utilization should stay firm, which is positive for the economy,” Ravelas said.
“The real issue isn’t how much we spend, but how quickly and how well that spending translates into real economic activity,” he added.
NIÑA MYKA PAULINE ARCEO
