Government agencies reported sharp decline in spending efficiency at the start of the year, utilizing less than half of their cash allocations as of January this year T

Data from the Department of Budget and Management (DBM) showed that the utilization rate for notices of cash allocation fell to 42.2 percent in January, a significant contraction from the 78 percent recorded in the same period in 2025.

While the DBM increased total fund releases to ₱322.7 billion—a 7.3 percent rise from ₱300.7 billion a year ago—the actual pace of disbursement failed to keep track with the expanded liquidity.

Of the total amount released to line departments, state-run firms, and local government units, only ₱136.3 billion was utilized. This left ₱186.4 billion in unused cash authority by the end of the month. Under the government's accounting framework, these notices act as the primary disbursement authority allowing agencies to pay for contracted works and services. Low utilization typically suggests delays in procurement or administrative hurdles in rolling out national programs.

The Department of Labor and Employment emerged as a primary laggard among major agencies, recording a utilization rate of just 20 percent. The department spent only a fraction of its ₱4.95 billion allocation.

Similarly, the Department of Information and Communications Technology utilized 38.3 percent of its funds, deploying ₱180.5 million out of a ₱471.6 million ceiling.

Other high-profile offices also saw sluggish disbursements, with the Office of the Ombudsman at 31.6 percent, the Judiciary at 31.9 percent, and the Office of the Vice President at 34.8 percent.

The Department of Energy posted a marked reversal in its spending performance. After starting 2025 with an 89 percent utilization rate, the agency’s efficiency dropped to roughly 60 percent of its ₱153.6 million allocation this January.

In contrast, the Commission on Elections maintained a high pace of spending at 97.6 percent, followed by the Commission on Audit at 95.1 percent.

Smaller technical bodies, including the National Nutrition Council and the National Research Council of the Philippines, fully exhausted their monthly allocations.

The Department of Education, which received the largest single allocation of ₱67.4 billion, managed to utilize 71 percent of its funds.

However, the Department of Social Welfare and Development, the second-largest recipient with ₱35.1 billion, utilized less than half of its budget at 45.8 percent.