Gov’t cash utilization rate slows in February

UTILIZED CASH allocated to government agencies slid in February, bringing down the overall average.

According to data from the Budget department, the utilization ratio for notices of cash allocations (NCAs) was down 6 percentage points last month to 82%, from the 88% recorded a year earlier.

The latest performance offset January’s 2% year-on-year growth to 76%, bringing the two-month average to 79%, being 2% below end-February 2016’s 81%.

The highest cash utilization rate as of last month was booked by the Commission on human Rights at 99%, followed by the Commission on Audit and Joint LegislativeExecutive councils both at 98%.

The weakest showing on the other hand was by the Department of Foreign Affairs, utilizing only 26% of NCAs.

Asked what caused the utilization slowdown, Budget Undersecretary Laura B. Pascua said the Department of Budget and Management (DBM) will first “consult the proper bureaus.”

The NCA is a cash authority issued by the DBM to central, regional and provincial offices and operating units through the authorized government servicing banks, to cover the cash requirements of the agencies.

House Minority Leader Danilo E. Suarez has raised the issue of government agencies’ poor capacity to absorb the government’s programmed budget under the previous administration.

Quirino Rep. Dakila Carlo E. Cua, Chairman of the Ways and Means committee, meanwhile sought a streamlining of the procurement process, noting that additional revenue from the administration’s proposed tax reform program may not translate to public projects if the funds are not maximized by government agencies.

About P1 trillion was left unspent by the previous administration, according to Mr. Cua. —