Gov’t releases 83% of 2024 budget in Q1

The government has released P4.8 trillion, or roughly 83 percent of the record P5.768 trillion allocation this year, as state agencies move to implement their respective projects.

Latest data from the Department of Budget and Management (DBM) showed it has issued P4.8 trillion of the 2024 budget as of end-March.

This represents 83.2 percent of the national budget allocated for the year, an improvement from the 81.9 percent in March 2023.

Based on data, the DBM released a total of P3.59 trillion under the 2024 General Appropriations Act (GAA). This is 89.4 percent of the total P4 trillion financing.

Under the 2024 GAA, the DBM said it has distributed 95.9 percent or P3.36 trillion of the P3.5 trillion for departments.

In terms of special purpose funds, releases increased to 44.8 percent, which means that P227.42 billion has been handed out from the P507.48 billion allocation.

On the other hand, automatic appropriations are already at 66.5 percent or about P1.17 trillion of the P1.76 trillion aggregate funding.

As of the end of the first quarter, the DBM has fully released allocations for the national tax allotment (P871.36 billion), block grants (P70.51 billion) and pensions of former presidents or their widows (P480,000).

Apart from these, the government increased releases for the tax expenditure fund at P6.93 billion or 47.8 percent of the P14.5 billion allocation in end-March.

Similarly, DBM used up 87.3 percent or P31.85 billion of the P36.48 billion in the special account in the general fund inclusive of the P10 billion for the implementation of the Rice Competitiveness Enhancement Program.

For the first time this year, the government disbursed P122.05 billion for interest payments, which is 18 percent of P670.47 billion earmarked for the year.

The DBM also freed up the entire P65.79 billion in retirement and life insurance premiums of state workers in January and added some P124.86 million in extra funds as of end-March.

However, for three months now, the DBM has yet to release any amount from the P28.7 billion for net lending.

Meanwhile, the DBM recorded P44.03 billion in other releases as of March, a little over half of which at P22.74 billion went to unprogrammed appropriations.

Unprogrammed appropriations provide standby authority to incur additional agency obligations for priority programs or projects when revenue collection exceeds targets or when additional grants or foreign funds are generated.

Of the unprogrammed funds, P15.24 billion was earmarked to support the foreign-assisted projects of the Departments of Agriculture, Public Works and Highways and Social Welfare and Development.

The other P7.5 billion was allocated to the National Food Authority.