The Department of Budget and Management (DBM) has called on government agencies to accelerate their budget disbursement and spending.
This call comes after the DBM reported a utilization rate of 90 percent among government agencies from January to April 2023, slower than the 92 percent recorded in the same four-month period a year ago.
The January to April 2023 utilization rate translates to a total of P1.175 trillion of notices of cash allocations (NCAs) utilized during the aforementioned period.
NCAs are documents issued by the DBM to authorize cash allocation to agencies and operating units through government servicing banks.
These funds are essential for the implementation of various programs and projects.
“We all know that our national budget is the lifeblood of all government programs and projects. The faster we disburse and utilize our funds, the faster we can procure and implement our projects,” DBM Secretary Amenah Pangandaman said.
“That’s why we want to remind our agencies to avoid underspending, given our very limited fiscal space. Again, we need to instill discipline in our national government agencies or we shall put the money to agencies which can really implement them. We have to remember, as early as the start of the year, we have emphasized that only implementation-ready proposals will be included in the 2024 Budget,” she added.