State firms spent better in February
State agencies recorded a better spending rate as of February as the government ramped up the release of its cash allocations to fund various projects.
Latest data from the Department of Budget and Management (DBM) showed that notices of cash allocation (NCAs) rose by 15.6 percent to P609.96 billion as of end-February from P527.46 billion in the same period last year.
Similarly, utilization rate improved to 88 percent from 86 percent in the comparative period.
This also means that of the total releases, P533.8 billion was utilized and some P76.17 billion was unused as of last month.
NCAs are disbursement orders by the DBM to government banks servicing the release of funds to agencies. State agencies are expected to use the NCAs to pay for the cash requirements of their programs and projects.
A higher utilization ratio indicates greater capacity of agencies to implement their programs and projects.
The DBM has been urging state agencies to boost their spending to contribute to better economic growth.
About 67 percent of NCA releases were secured by line departments at P408.07 billion. The remaining P201.89 billion was directed to other agencies, especially state-run firms and local governments.
By sector, line departments registered a utilization rate of 81 percent or P332.25 billion for the NCAs they received as of February. This is better than the 79 percent recorded last year.
Other agencies used up their entire allocation largely to cover the internal revenue allotment, special shares and other transfers for LGUs.
By departments, the Department of Education (DepEd) and the Department of Public Works and Highways (DPWH) obtained the highest NCAs worth P96.67 billion and P81.97 billion, respectively, as of February.
Data showed that DepEd used 89 percent of its NCAs, while DPWH managed to spend about 79 percent of its allocation. Both agencies recorded a higher spending rate as compared to last year.
No agency recorded a 100 percent utilization rate during the month.
The only agencies that posted above 90 percent utilization of their NCAs as of end-February are the DBM, the Department of Agrarian Reform, Commission on Audit and state universities and colleges.
Meanwhile, the Department of Migrant Workers registered the worst utilization rate in February at only 44 percent of its NCAs totaling P1.06 billion out of the P2.41 billion allocation.
The Office of the Vice President came in second with a utilization rate of 50 percent at P122.3 million out of P242.91 million, while the Department of Labor and Employment was next with 52 percent at P3.06 billion out of the P5.86 billion released.
Last year, the DBM released a record P4.45 trillion worth of NCAs as the government expedited programs and projects that could help the country recover from the pandemic.