State agencies utilize 64% of cash allocations in February

State agencies have utilized 64 percent of all cash allocation’s released by the National Treasury as of endFebruary, the Department of Budget and Management (DBM) reported.

According to latest data from the DBM, implementing agencies have already spent P324.09 billion of the P507.48 billion total notices of cash allocationS (NCAs) released during the first two months of the year.

Though this is slower than the 79 percent utilization rate recorded the same period in 2017, figures showed this is also an improvement from the P256.91 billion spent by the government relative to the P323.96 billion released during the period.

Agencies need NCAs to claim their checks from the Bureau of the Treasury, which are then used to pay for public projects and services.

Once utilized, funds are deemed disbursed and are recorded on the government balance sheet.

Earlier, DBM Undersecretary Laura Pascua said the agency has instituted reforms in the release of funds, as well as the reporting standards pertaining to the utilization of NCAs.

She said the changes are in line with the improved cash management programs of the agency and the Bureau of the Treasury (BTr).

Among the changes, Pascua said, is the early release of the quarterly NCA requirements of agencies, as specified in their Monthly Disbursement Plans.

“The DBM released in January the entire NCA requirement of agencies for their current operations, but with a quarterly breakdown. Additional NCA for accounts payables will be released based on evaluation of agency requests,” Pascua said in a text message.

The DBM official said state agencies are also being required to submit to the Treasury daily and weekly cash plans consistent with the Monthly Disbursement Plans.