Department of Budget and Management (DBM)
OFFICIAL GAZETTE

CASH UTILIZATION by government agencies was 83% in the eight months to August, remaining weak due to spending constraints imposed by the pandemic, the Department of Budget and Management (DBM) said.

Cash utilization rates are based on Notice of Cash Allocations (NCAs), an authorization issued to agencies of funds available for disbursement. The DBM said P2.245 trillion worth of NCAs were issued out of the P2.693 trillion released in the eight months.

NCA utilization rates have been declining year on year since April, when much of the country was under strict lockdown. Restrictions have been eased since June.

Line agencies had used P1.555 trillion worth of NCAs by the end of August, for a utilization rate of 80%.

The Commission on Elections had the highest utilization rate at 91%, followed by the Commission on Human Rights with 90% and the Department of National Defense 88%.

Other budgetary items were utilized at a rate of 92% during the period, with P689.927 billion disbursed out of the P746.723 billion released.

This includes P143.55 billion for budgetary support to government-owned and -controlled corporations, with a 97% usage rate; and P546.38 billion from the allotment to local government units, which had a 91% utilization rate.

The DBM has released P3.9 trillion or 95.6% of this year’s P4.1-trillion budget in the eight months to August. — Beatrice M. Laforga