Budget utilization off to sluggish start in January
National government agencies showed sharply slowed spending as of end-January despite higher cash releases, signaling a sluggish start to budget execution in 2026.
Latest data from the Department of Budget and Management (DBM) showed Notices of Cash Allocation (NCA) releases rose up by 7.3 percent to P322.67 billion in January.
However, the utilization rate fell to just 42.2 percent. This was nearly half of the 78 percent recorded in the same period last year.
This left about P186.37 billion in unspent allocations in the first month of 2025.
NCAs refer to the authority issued by DBM that allows agencies to cover government agencies’ cash needs for operations, programs, and projects.
A low utilization rate indicates that agencies are slow in spending released funds. This affects their capacity to implement programs and projects in a timely manner.
To recall, a slowdown in public spending was among the major spillover effects of the flood control corruption scandal. This contributed to weaker gross domestic product (GDP) growth in 2025.
Of the total NCAs released, line departments received P212.03 billion and disbursed 62.7 percent, or P123.86 billion.
The Department of Education secured the highest allocation at P67.37 billion and utilized 71 percent, or P47.82 billion. This is lower than the 81 percent utilization rate posted a year ago.
Notably, the Department of Public Works and Highways (DPWH), which was at the center of the said corruption issue and has since tightened spending amid stricter oversight, received only P2.88 billion compared with P37.7 billion last year.
