The Department of Budget and Management (DBM) has confirmed that several government agencies, led by the Department of Information and Communications Technology (DICT), will face budget cuts in the coming year due to their low spending efficiency.

In a briefing on Monday, Aug. 7, Budget Secretary Amenah F. Pangandaman said that the DICT would experience the largest reduction in budget in 2024.

The reason cited by Pangandaman was DICT’s low budget utilization rate from January to June this year.

During the budget deliberation in June, the DBM chief revealed that the DICT had only utilized seven percent of its allocated budget for the current year.

However, the DICT has made assurances that it will implement a catch-up plan during the remaining months of 2023, Pangandaman said.

“I’m heartbroken because we’re pushing for digitalization,” Pangandaman said.

Based on the 2024 National Expenditure Program submitted to Congress, the DICT's proposed budget will be reduced by P1 billion to P10 billion for the upcoming year from the current year's P9 billion.

Other agencies with reduced proposed budgets are the Department of Labor and Employment, Department of Agrarian Reform, Department of Tourism, Department of Health, and Department of Public Works and Highways.

However, Pangandaman clarified that the perceived reduction in budgets was a result of Congress-Introduced Changes/Adjustments, which refer to increases in the funding requirements for the 2023 appropriations that were initiated by lawmakers.

Meanwhile, Pangandaman said that she is confident that there will be no reenacted budget for 2024 national budget.

A re-enacted budget refers to a situation where the government operates using the previous year's budget for a certain period of time, typically because the new budget has not been passed or approved by the legislature.

“I won’t happen,” Pangandaman assured.

The DBM officially presented the proposed budget for 2024 to the House of Representatives last Wednesday amounting to P5.768 trillion, a 9.5 percent increase from the current year's appropriations.

Pangandaman expressed her confidence in Congress prioritizing the 2024 budget, as promised by Speaker Martin Romualdez when the proposed budget was submitted on Aug. 2.

Pangandaman emphasized the determination of the Marcos administration to sustain economic growth between 6.5 percent and eight percent from 2024 to 2028.

She stressed the importance of avoiding a reenacted budget, which would result in a 1.2 percent contraction of the economy.

The budget chief also mentioned that Congress has ample time to thoroughly review the budget proposal and still pass the General Appropriations Act before the end of the year.

“On our part, we made sure to submit the budget to the President on July 25 or one day after the SONA and to Congress by Aug. 2, even earlier than last year,” Pangandaman concluded.