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Manila Bulletin devider Business devider Banking & Finance devider Budget release pace slows to 87.7% on agriculture, education delays

Budget release pace slows to 87.7% on agriculture, education delays

Published Jun 17, 2026 04:59 pm

At A Glance

  • Due in part to slower budget releases for agriculture and education, the Philippine government's allotment release pace decelerated as of end-May, with 87.7 percent of the national budget released.
The national government’s fiscal disbursement pace cooled in the first five months of the year as sluggish budget rollouts in the agriculture and education sectors countered an otherwise aggressive catch-up in infrastructure spending.
According to data from the Department of Budget and Management (DBM), allotment releases reached 87.7 percent of the national budget in January to May.
While the state has distributed ₱5.96 trillion of its total ₱6.793 trillion fiscal year 2026 allocation—higher in absolute terms than the ₱5.72 trillion released during the same period in 2025—the overall momentum has trailed behind the 90.4 percent release rate achieved a year ago.
Notably, the Department of Agriculture (DA) has emerged as a primary bottleneck. Of its ₱169 billion adjusted program for 2026, the DA has released only ₱107.5 billion, or 63.6 percent of its allocation—a sharp decline from May 2025, when the department had already utilized 92.2 percent of its budget. Similarly, the Department of Education (DepEd) saw its release rate drop from 94.7 percent in 2025 to 85.2 percent this year.
Consequently, the General Appropriations Act (GAA) rollout slowed to 84.1 percent as of end-May, down from the 89.2 percent recorded during the same period in 2025. This was largely driven by delays in Special Purpose Funds (SPFs), which saw only 54.2 percent of their ₱719.4 billion total adjusted allocation released, compared to 57.9 percent the previous year.
Meanwhile, automatic appropriations remained a steady anchor for fiscal activity, maintaining an 89.6 percent release rate. The government has already fully released the National Tax Allotment (NTA)—which increased to ₱1.19 trillion in 2026 from ₱1.03 trillion in 2025—while block grants also achieved a full 100 percent release at ₱94 billion.
Funds for retirement and life insurance premiums saw near-instantaneous distribution, totaling ₱82.7 billion to support personnel benefits.
Despite the broader slowdown, several key departments continue to demonstrate high efficiency. Notably, the Department of Public Works and Highways (DPWH)—historically a bottleneck—has caught up significantly, reaching a 96.6 percent release rate for its ₱530.1 billion allocation.
Similarly, the Department of Transportation (DOTr) and the Department of National Defense (DND) maintained a strong pace, posting release rates of 91.5 percent and 95.4 percent, respectively.
As of end-May, the government holds an unreleased balance of ₱835 billion.

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Department of Budget and Management (DBM)
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