Budget utilization rate stays the same as of end-December

THERE has been no movement in the budget utilization of state agencies as of end-December 2023, according to the Department of Budget and Management (DBM).

DBM data showed that notices of cash allocation (NCAs) recorded the same utilization rate in 2022 at 98 percent.

Agencies used P4.344 trillion of the P4.452 trillion released under the NCAs from January to December, slightly lower than the P4.338 used budget in the same period in 2022.

A total of P107.86 billion was unused as of end-December.

NCAs refer to disbursement authorities issued by the DBM to government servicing banks, such as Development Bank of the Philippines, Land Bank of the Philippines and Philippine Veterans Bank, to cover the cash requirements of agencies’ programs, activities and projects.

NCAs are valid up to the last working day of the quarter covered.

This represents a quarterly authorization granted by the DBM to organizations, enabling them to access funds from the Bureau of the Treasury in order to fulfill their expenditure requirements.

At the end of December, departments used P3.2 trillion, or 97 percent of their allotments, leaving P105.07 billion unused. This was slightly higher than the P3 trillion utilized by the same period of 2022.

The agencies to post a 100-percent budget usage rate were the Department of the Interior and Local Government (P315.444 billion of P315.994-billion budget), Judiciary (P53.407 billion of P53.453-billion budget), Commission on Human Rights (P1.069 billion of the P1.069-billion budget) and Commission on Elections (P12.519 billion of the P12.519-billion budget).

The Department of Migrant Workers had the lowest usage rate of 39 percent at the end of December, with only P5.722 billion of the P14.746-billion budget for the month of December being used.

Meanwhile, 100 percent of the Special Purpose Funds were utilized with P1.108 trillion of the P1.110-trillion budget being used as of end-December.