State agencies improve use of budget

The rate at which government agencies use their cash improved to 99 percent in the first nine months of the year, according to the Department of Budget and Management (DBM) said.

By the end of September, the national government, local governments, and state-owned companies used P3.46 trillion of the P3.52 trillion made available to them through the issuance of notices of cash allocation (NCAs).

An NCA refers to quarterly authority given by the DBM to agencies to withdraw money from the Treasury to fund their programs and spending requirements.

Nine-month cash utilization rate was higher from the 97 percent observed in the same period last year.

Back then, government agencies used P3.09 trillion out of P3.18 trillion worth of NCAs issued.

Unused cash allocations amounted to P51.60 billion in September, lower than P83.54 billion that government agencies failed to use last year.

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Looking back, Budget Secretary Amenah Pangandaman highlighted that the agency has intensified its efforts to ensure the effective and timely use of budgets.

This follows the issuance of Circular Letter No. 2024-12 last June 28, which mandated government agencies, particularly those with low budget utilization rates, to identify spending obstacles and submit detailed plans to address them.