By Louise Maureen Simeon, March 11, 2025; The Philippine Star
Manila, Philippines — The government released a record P4.9 trillion in cash allocations last year largely to finance infrastructure projects, as well as the education sector, the Department of Budget and Management (DBM) said.
Latest data from the DBM showed that the release of notice of cash allocations (NCAs) for 2024 rose by 10 percent to P4.9 trillion from P4.45 trillion in 2023.
Even with the increase, government agencies recorded a higher utilization rate of 99 percent from 98 percent the year prior.
This means that of the total releases, only some P72.6 billion was left unused as of end-2024.
NCAs are disbursement orders by the DBM to government banks servicing the release of funds to agencies. State agencies are expected to use the NCAs to pay for the cash requirements of their programs and projects.
A higher utilization ratio indicates greater capacity of agencies to implement their programs and projects.
About 76 percent of NCA releases were secured by line departments at P3.72 trillion. The remaining 24 percent or P1.18 trillion was directed to other agencies, especially state-run firms and local governments.
By sector, other agencies managed to use up the entire allocation for them to cover the internal revenue allotment, special shares and other transfers for LGUs.
Line departments, on the other hand, registered a better utilization rate of 98 percent or P3.65 trillion for the NCAs they received in 2024. In 2023, the spending rate was at 97 percent.
By departments, the Department of Public Works and Highways (DPWH) and the Department of Education (DepEd) still obtained the highest NCAs worth P968.86 billion and P730.68 billion, respectively.
Data showed that DPWH managed to utilize its entire allocation while DepEd used up 98 percent.
Aside from the DPWH, the Departments of Interior and Local Government, Labor and Employment and Social Welfare and Development; the Judiciary, Commission on Elections, Office of the Ombudsman and the Commission on Human Rights also recorded a 100 percent utilization rate.
Other agencies that posted above 95 percent usage rate include the Departments of Agrarian Reform, Foreign Affairs, Health, National Defense, Tourism and Transportation; the National Economic and Development Authority, Civil Service Commission, Commission on Audit as well as state colleges and universities.
The Department of Human Settlements and Urban Development registered the worst utilization rate last year at only 67 percent of its NCAs totaling P2.25 billion out of the P3.37 billion allocation.
The DBM came in second with a utilization rate of 72 percent at P2.2 billion out of P3.6 billion, while the Department of Migrant Workers is in third with a spending rate of 82 percent.