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Manila Bulletin devider Business devider The Economy devider Gov't spending slows in May with ₱261 billion in unused cash

Gov't spending slows in May with ₱261 billion in unused cash

Published Jun 25, 2026 04:41 pm
Government agencies reported a dip in spending efficiency as of May, with the utilization of cash allocations slowing compared to the same period last year and leaving ₱260.8 billion in unused cash authority.
Data from the Department of Budget and Management (DBM) showed that the overall utilization rate for notices of cash allocation (NCA) stood at 89 percent in May 2026, a five-percentage-point decrease from the 94 percent recorded in May 2025.
Total fund releases increased 12.3 percent to ₱2.37 trillion from the ₱2.11 trillion recorded a year ago. Of the total amount released to departments and offices, ₱2.11 trillion was utilized. This left ₱260.8 billion in unused cash authority by the end of May—nearly double the ₱136.2 billion left unspent in 2025.
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 signals efficient procurement and faster administrative rollout of national programs.
Several major agencies saw significant declines in their cash utilization rates. The Department of Education (DepEd) saw its utilization rate dip from 96 percent to 88.8 percent. Of its ₱388.9 billion total allocation, DepEd left ₱43.4 billion unused, which is more than triple the ₱13.4 billion recorded a year ago.
The Department of Social Welfare and Development (DSWD) also experienced a notable drop, with its utilization rate falling from 94 percent to 77.4 percent. This left DSWD with ₱40.6 billion in unused NCAs at the end of the month, compared to ₱7.9 billion in the previous year.
Furthermore, the Department of Public Works and Highways’ (DPWH) spending efficiency saw a sharp decline from 90 percent to 63.9 percent. This drop occurred alongside a significant reduction in its total NCA releases, which fell from ₱417.9 billion to ₱271.4 billion.
The Department of Finance (DOF) saw its utilization rate fall to 88.1 percent from 97 percent in May 2025, a decline that accompanied a massive reduction in total releases to the department, which plummeted from ₱46.2 billion to ₱10.9 billion. Similarly, the Department of Transportation (DOTr) saw its utilization rate decline from 86 percent to 72.9 percent.
Other agencies reporting lower utilization rates included the Department of Agriculture (DA) at 65.1 percent, down from 72 percent, and the Civil Service Commission (CSC) at 66.3 percent, down from 87 percent. The Commission on Elections (Comelec) saw its utilization rate drop to 60.3 percent from 78 percent last year.
In contrast, a few agencies bucked the downward trend. The Department of National Defense (DND) saw its utilization rate improve, rising from 95 percent to 98 percent. The Judiciary also improved its rate from 80 percent to 82.2 percent, while the Commission on Audit (COA) maintained a nearly perfect utilization rate of 99.4 percent.

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Department of Budget and Management (DBM)
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