Gov’t boosts budget disbursement to 98.9%

The Development Budget Coordination Committee (DBCC) reported that the third quarter posted an increase in disbursements by the Marcos administration due to the swift execution of government programs.

The DBCC, an inter-agency body responsible for establishing the government’s macroeconomic assumptions, announced that budget disbursements reached 98.9 percent of the planned amount as of September, compared to 93.4 billion at the end of June.

“This was mainly driven by the robust disbursement in the third quarter, reaching ₱3.82 trillion as of the end of September,” the DBCC said.

President Marcos’ economic team has been grappling with an issue of underspending this year.

In the second quarter, the economy registered a modest growth rate of 4.3 percent, falling short of both the projected six percent growth rate by private analysts and the 6.4 percent gross domestic product (GDP) growth recorded in the first quarter of 2023.

A notable observation was the contraction of public spending by 7.1 percent, which marked a reversal from the 6.2 percent growth recorded in the first quarter and a decline from the 10.9 percent expansion seen a year ago.

In an effort to tackle underspending, the Department of Budget and Management (DBM) requested government agencies to submit their catch-up plans for the second half of 2023.

According to the DBCC, the submission of catch-up plans by the government agencies was deemed “successful.”

“Supported by the successful submission of agencies’ catch-up plans, government spending is expected to further improve during the fourth quarter,” the DBCC said. “This will be mainly driven by accelerated implementation of programs on infrastructure, transport, labor and employment, social protection, and education, among others.”

To facilitate the necessary assistance, the DBCC said the economic team, in collaboration with the DBM, will maintain a strong level of coordination with government agencies.

This coordination will primarily concentrate on agencies that have encountered challenges in utilizing their budgets effectively.

Regular meetings will be conducted to assess their spending performance and develop strategies to catch up on their budget implementation.

DBCC MEETING – The Development Budget Coordination Committee (DBCC), chaired by Budget Secretary Amenah F. Pangandaman, holds a special meeting to discuss the status of agencies’ catch-up plans, measures to address underspending, and updates on revenue collections on Friday, Nov. 3, 2023, at the Department of Finance in Manila. Also present in the meeting were Finance Secretary Benjamin E. Diokno and National Economic and Development Authority Secretary Arsenio M. Balisacan. (DBM FB)