Budget release rate lags in Q1 after year-earlier election rush
THE GOVERNMENT has released nearly 80% of its programmed budget for the year in the first three months, according to data from the Department of Budget and Management (DBM).
The Budget department released P2.677 trillion, or 79.9% of its P3.35 trillion budget to government departments and agencies in the first quarter.
This lagged the pace of the first quarter of 2016, when 82.3% was released from the P3 trillion budget.
About P1.665 trillion, or 84.6% of the P1.968 trillion, was released to government departments.
Sought for comment, Budget Secretary Benjamin E. Diokno said that the slower release of funds was due to base effects, as government agencies raced to obtain fund releases ahead of the election ban in March last year.
“Last year was an election year, and there is pressure on the administration to release funds to beat the election ban,” he said.
Mr. Diokno added that structural challenges remain in releasing funds, noting that the administration has just started its first year.
“Q1 2017 may not exactly be comparable with Q1 2016. The latter is ( President Benigno S.C.) Aquino’s last and his government enjoyed the benefit of learning-by-doing; the former is Mr. (Rodrigo R.) Duterte’s first,” he said when asked if the slowdown was due to weaker absorptive capacity.
Bank of the Philippine Islands chief economist Emilio S. Neri, Jr. said the slower rate of releasing funds may also be due to some unprogrammed infrastructure projects for the year.
“Its possible that some big-ticket spending items have not been fully detailed pending final decisions from major government agencies on which projects will be given priority,” said Mr. Neri in a mobile message yesterday.
Moreover, 26.7% of the allotted special purpose funds were released amounting to P123.478 billion.
On the other hand, 94.9% or P871.524 billion worth of automatic appropriations — covering debt servicing, pension, insurance and grants — were released in the first quarter. —