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Manila Bulletin devider Business devider The Economy devider Gov't agencies speed up spending even as cash releases dip

Gov't agencies speed up spending even as cash releases dip

Published Apr 6, 2026 04:34 pm
Government agencies accelerated their spending efficiency in the first two months of the year, burning through cash allocations at a faster clip than in 2025 despite slight contraction in total fund releases.
Data from the Department of Budget and Management (DBM), published on Monday, April 6, showed that the overall utilization rate for notices of cash allocation (NCA) climbed to 87 percent in February, up from 83 percent in the same period in 2025.
While the DBM recorded a slight decrease in total fund releases to ₱700.2 billion—a 1.5 percent dip from ₱710.9 billion a year ago—the actual pace of utilization increased.
Of the total amount released to line departments, state-run firms, and local government units, ₱608.9 billion was utilized. This left ₱91.3 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.
High utilization typically suggests more efficient procurement and administrative rollout of national programs compared to earlier in the year.
Notably, the Commission on Elections (Comelec) experienced the most dramatic improvement, surging from 64 percent in 2025 to 96.5 percent in 2026.
The Department of Transportation (DOTr) also significantly improved its efficiency, rising from 76 percent to 92 percent.
This was also the trend for the Department of Foreign Affairs (DFA) from 89 percent to 98.1 percent; Commission on Audit (COA) from 87 percent to 95.6 percent; and the Department of Education (DepEd), from 86 percent to 89.1 percent, even with a ₱21 billion increase in its allocation.
Further, the Department of Public Works and Highways’ (DPWH) spending efficiency also improved from 81 percent to 91.5 percent in 2026, despite a sharp decline in its total NCA releases from ₱112.1 billion to ₱61.2 billion.
Meanwhile, several agencies saw their performance trend downward, with some experiencing a complete reversal of their 2025 efficiency levels.
For one, the Department of Social Welfare and Development (DSWD) dropped sharply, plummeting from 92 percent to 60.2 percent. This left ₱22.8 billion in unused NCAs compared to only ₱2.8 billion the previous year.
Both the Department of Information and Communications Technology (DICT) and the Judiciary’s spending efficiency dropped in 2026, with the former slowing to 59.9 percent from 76 percent, and the latter to 49.5 percent from 59 percent.
Other laggards were the Department of Agriculture (DA) at 59.3 percent and the Department of Labor and Employment (DOLE) at 50.2 percent.
It can be noted that the Department of Finance (DOF) significantly improved from eight percent in February 2025 to 65.4 percent this year. This came alongside a significant cut in total releases to the department, from ₱36.2 billion down to ₱3.8 billion.

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