Release of budget slows for 5th month

Fund releases to agencies slowed for the fifth straight month in September, but the Department of Budget and Management ( DBM) maintained it was not due to the transition in government.

A total of P2.75 trillion was released for the first nine months, accounting for 91.7 percent of the P3.002-trillion national outlay, latest DBM data showed.

The figure marked a slowdown from 93.4 percent in the same period last year and followed a slowing trend that started during the election month of May.

Allotment releases indicate agencies may now enter into contracts for public services, after which funds may be obligated and then spent once checks are available.

“The reason is still related to the first answer we gave. It is still not due to transition,” Budget Undersecretary Laura Pascua said in a text message last Friday.

She was pertaining to the P11.68 billion in releases from the unprogrammed fund last year that was used for rehabilitation of areas hit by Typhoon Yolanda in November 2013.

Pascua said releases were “quite substantial” last year so much so that base effect may be felt until the end of 2016.

“But releases for the bonuses and additional compensation this quarter may offset it,” she said.

In addition, she also pointed to the “large” continuing appropriations of P62.5 billion last year as a reason. For this year, that amount was reduced to just P34 million.

According to DBM data, departments and offices already got hold of P1.54 trillion in funds, accounting for 94.9 percent of the total.

Around 61 percent or P276.94 billion of special purpose funds-- which includes contingent and calamity money was also released.

The balance of P879.36 billion or 94.5 percent of the total was in the form of automatic appropriations that included debt payments and money for local government units and state corporations.

But Alvin Ang, economist at Ateneo de Manila University, said the elections and adjustment of the Duterte contributed to the slowdown.

“For the previous government, they may have stopped to spend on big projects months before the new one took over,” Ang said over the phone.

“The new one, of course, will have to adjust. There are still so many vacancies left unfilled. I expect this to last until the end of the year,” he added.