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Manila Bulletin devider Business devider Banking & Finance devider Gov't spending efficiency slips at end-March despite higher fund releases

Gov't spending efficiency slips at end-March despite higher fund releases

Published Apr 23, 2026 02:18 pm

At A Glance

  • Government agencies reported a dip in spending efficiency as of March 2026, although they continued to utilize the vast majority of their cash allocations compared to the same period in 2025.

Government agencies reported a dip in spending efficiency as of end-March, although they continued to utilize the vast majority of their cash allocations compared to the same period in 2025.

The latest data from the Department of Budget and Management (DBM) showed that the overall utilization rate for notices of cash allocation (NCAs) was 98.5 percent at the end of the first quarter, a slight decrease from the 99 percent recorded a year ago.

Total NCA releases increased to ₱1.24 trillion—a 9.3-percent rise from the ₱1.13 trillion in the same period last year.

Of the total funds released to line departments, state-run firms, and local government units (LGUs), ₱1.22 trillion was utilized. This left ₱19.1 billion in unused cash authority by the end of the first quarter, a sharp increase from the ₱8.6 billion left unused a year ago.

Under the government’s accounting framework, NCAs 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.

Several agencies saw modest declines in their cash use rates. The Department of Foreign Affairs (DFA) moved from 100 percent to 99.9 percent; the Department of Labor and Employment (DOLE) from 100 percent to 99.7 percent; and the Department of Education (DepEd) dipped from 100 percent to 99.7 percent despite a roughly ₱18-billion increase in its allocation.

Further, the Department of Public Works and Highways (DPWH) saw its spending efficiency dip slightly from 99 percent to 98.9 percent in 2026. The department also recorded a sharp decline in its total NCA releases, which fell from ₱207.5 billion to ₱113.9 billion.

Notably, the Department of Social Welfare and Development (DSWD) saw a significant decline, with its utilization rate dropping from 100 percent to 86.3 percent. This left ₱13.6 billion in unused NCAs at the end of the quarter, compared to just ₱13.8 million in unused funds the previous year.

Other agencies with lower utilization rates included the Department of Agriculture (DA) at 84.5 percent and the Civil Service Commission (CSC) at 58.2 percent.

Further, the Department of Finance (DOF) saw its utilization rate drop to 93 percent from 99 percent a year ago. This decrease accompanied a massive reduction in total releases to the department, which fell from ₱38.4 billion to ₱5.8 billion.

Meanwhile, the Commission on Elections (Comelec) maintained a 100-percent utilization rate, consistent with its performance last year. The Department of Transportation (DOTr) saw its efficiency improve slightly, rising from 99 percent to 99.9 percent.

Both the Commission on Audit (COA) and the Judiciary also maintained perfect 100-percent utilization rates.

Related Tags

Department of Budget and Management (DBM) Budget 2026
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