Government agencies posted a 94-percent utilization rate of their cash allocations in the first seven months of 2025, unchanged from a year ago, but the Department of Energy (DOE) and the Department of Information and Communications Technology (DICT) continued to trail behind.
Latest data from the Department of Budget and Management (DBM) showed that notices of cash allocation (NCAs) released to state agencies reached ₱2.99 trillion in January to July, 9.1 percent higher than last year’s ₱2.74 trillion.
Of this amount, ₱2.81 trillion was utilized by line departments, state-run corporations, and local government units (LGUs), leaving ₱178.2 billion in unused funds during the seven-month period.
NCAs are fund release authorities issued by the DBM that allow government agencies to spend for their programs and projects. A higher NCA utilization rate indicates that agencies are disbursing funds and implementing projects on time.
Only the Department of Migrant Workers (DMW) and the Commission on Audit (COA) recorded a 100-percent utilization rate.
Notably, the DOE posted the lowest utilization rate at 63 percent, using ₱1 billion of the ₱1.7 billion released. It has overtaken the DICT, which closely followed at 64 percent. Of the ₱6.5 billion released, the DICT utilized ₱4.2 billion.
By value, the Department of Public Works and Highways (DPWH) received the highest allocation of ₱610 billion, of which 94 percent has been used. The Department of Education (DepEd) received the second-largest allocation of ₱422.6 billion, with 97 percent utilized.
At end-July, ₱5.94 trillion or 93.8 percent of this year’s record ₱6.326-trillion national budget had been spent, DBM data showed.
Meanwhile, the proposed national budget of ₱6.793 trillion for fiscal year 2026 has already been submitted to Congress for budget briefings.
On Wednesday, Aug. 20, the DBM published the 2024 Agency Performance Review (APR), flagging 16 of the 308 assessed national government agencies (NGAs) as performing poorly or unsatisfactorily in both fiscal terms and implementation of programs.
Meanwhile, 14 achieved an outstanding performance rating, 181 were rated very satisfactory, and 94 received a satisfactory rating.
DBM Secretary Amenah F. Pangandaman told reporters she has already ordered government agencies to submit their catch-up plans following its slowest spending in three quarters in the second quarter.
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.