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Data-based budget allocation enables higher performance level, improved public service

Published Sep 1, 2025 12:05 am  |  Updated Aug 31, 2025 03:40 pm
While the spotlight is currently beamed on the alleged massive misuse of government funds in substandard as well as “ghost” flood control projects, the Department of Budget and Management (DBM) is also calling attention to the rate at which line departments and agencies are spending their budget allocations.
According to the DBM, around 94 percent of the 2025 national budget has already been spent in the first seven months of the year. This indicates a fairly high level of actual versus planned delivery of services. Some ₱2.99 trillion, or nearly half of the annual budget, have been released to state agencies from January to July. Of this amount, ₱2.81 trillion was utilized by line departments, government-owned and controlled corporations, and local government units (LGU); hence, for the seven-month period, unused funds total ₱178.2 billion.
Notices of Cash Allocations, or NCAs, are issued by the DBM to authorize government agencies to spend, contingent upon the submission of detailed plans and projects showing how and where such amounts will be spent. Commendably, both the Department of Migrant Workers (DMW) and the Commission on Audit (COA) recorded a 100 percent utilization rate.
On the other side of the ledger, the DBM has flagged that the Department of Energy (DOE) and the Department of Information and Communication Technology (DICT), have posted relatively lower utilization rates of 63 percent and 64 percent of their released budgets totaling ₱1.7 billion and ₱6.5 billion, respectively.
All in all, ₱5.94 trillion or 93.8 percent of this year’s ₱6.326-trillion national budget had been spent. For 2026, the DBM submitted to Congress a National Expenditure Plan (NEP) amounting to ₱6.793 trillion. This is 22 percent of the country’s Gross Domestic Product (GDP), and 5.8 percent higher than the 2025 national budget.
The DBM has also revealed the results of the 2024 Agency Performance Review, calling the attention of 16 out of the 308 assessed national government agencies (NGAs) that are performing poorly or unsatisfactorily in terms of fiscal performance and implementation of programs they committed to deliver. Commendably, 14 agencies were rated outstanding, 181 as very satisfactory and 94 as satisfactory. More than two-thirds, or 195 agencies, performed better than satisfactorily. This is a highly encouraging indicator that conveys to the people an elevated consciousness and a strong will to serve.
The DBM states that if the underformers do not level up, their budget allocations will be reduced and reallocated to those that have demonstrated superior capacity to deliver on their committed targets.
The nation's attention is now focused on how responsibly the government will spend the taxes that are paid by businesses and citizens. Such taxes are deducted from business revenues and employee salaries.
Cabinet members are expected to orchestrate the judicious utilization of their department and agency budgets as they reflect and represent the President’s will to fulfill the people’s mandate.
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