Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman said it has already ordered government agencies to submit their catch-up plans following its slowest spending in three quarters in the second quarter.

“We already asked each agency to submit to us their catch-up plan,” Pangandaman told reporters on the sidelines of the DBM’s launch of 2024 Agency Performance Review (APR) Report on Wednesday, Aug. 20.

Pangandaman attributed the spending slowdown to the procurement process. “Maybe it’s a procurement process. That’s why it went down last time. We also have to consider the election ban we had,” Pangandaman told reporters.

“But now we can see in their submissions, they’re giving a lot of submissions to direct the programs and projects of the agencies. We’ll get their catch-up plans soon, and then we’ll release it to the public,” the Budget chief said.

Pangandaman noted that if underperforming agencies fail to improve after the assessment and submission of catch-up plans, the DBM will reduce their allocations, consistent with its usual practice.

“That’s what happens. We’re really lowering the budget of the agencies,” Pangandaman told reporters, noting that one of the DBM’s frameworks in determining allocations for government agencies is their absorptive capacity.

National government agencies (NGAs) used 99 percent of their cash allocations in the first semester as higher fund releases backed key programs and projects. DBM data showed cash allocation releases to state agencies hit ₱2.489 trillion in the first half, 10.3 percent higher than the ₱2.256 trillion a year ago

This brought the utilization rate of line departments, state firms, and local governments to 99 percent in the first six months, unchanged from a year ago. A total of ₱2.463 trillion was spent, and ₱26.363 billion was left unused.

To recall, government spending slowed to 8.7 percent from 18.7 percent growth in the previous quarter and 11.9 percent last year, according to the latest report from the Philippine Statistics Authority (PSA).

It notably posted the slowest pace in three quarters since the five percent in the third quarter of 2024.

Of the 308 assessed departments and agencies, 14 (4.6 percent) achieved an outstanding performance rating, 181 (59.3 percent) were rated very satisfactory, and 94 (30.8 percent) received a satisfactory rating.

Meanwhile, 16 agencies (5.3 percent) were classified under poor to unsatisfactory performance.

Based on the financial and physical performance of national government agencies (NGAs), the Department of Finance (DOF) received a satisfactory rating, while the Office of the Secretary (DOF-OSEC) and the Bureau of Customs (BOC) were rated unsatisfactory.

Similarly, the Department of Transportation (DOTr) was rated satisfactory, whereas the Office of the Secretary (DOTr-OSEC) posted an unsatisfactory performance last year.

The Department of Tourism (DOT) also received a satisfactory rating, but its Office of the Secretary (DOT-OSEC) and the Philippine Commission on Sports Scuba Diving (PCSSD) were rated unsatisfactory.

Within the Department of Health (DOH), which was rated satisfactory overall, the National Nutrition Council (NNC) received an unsatisfactory rating.

State universities and colleges (SUCs) nationwide posted “strong fiscal and institutional performances” last year, except for the Philippine State College of Aeronautics, Rizal Technological University, Technological University of the Philippines, Cotabato Foundation College of Science and Technology, Marinduque State College, Bicol University, and Apayao State College—all rated unsatisfactory.

Notably, only Romblon State University received a poor rating, which is lower than unsatisfactory. Other executive offices with unsatisfactory ratings were the Commission on Higher Education (CHED), Mindanao Development Authority, and Philippine Racing Commission.

Meanwhile, agencies rated outstanding included Biliran Province State University, Cagayan State University, Civil Service Commission (CSC), Davao del Sur State College, Foreign Service Institute, Games and Amusements Board, Mines and Geosciences Bureau, National Intelligence Coordinating Agency, National Labor Relations Commission, National Wages and Productivity Commission, News and Information Bureau, Philippine Information Agency, President Ramon Magsaysay State University, and the Public Attorney’s Office.