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Manila Bulletin devider Business devider The Economy devider Budget rollout slows as agri, educ delays counter infra surge

Budget rollout slows as agri, educ delays counter infra surge

Published Jul 20, 2026 05:02 pm
Slow budget rollouts in agriculture and education dragged down government spending in the first half of the year, offsetting the aggressive catch-up in infrastructure projects and further decelerating the Marcos administration’s fiscal disbursement pace.
According to data from the Department of Budget and Management (DBM), allotment releases stood at 89.9 percent of the national budget in the first semester of 2026.
The state has distributed ₱6.11 trillion of its total ₱6.793 trillion fiscal year 2026 allocation, higher in absolute terms than the ₱5.826 trillion released during the same period in 2025.
However, the overall momentum trailed the 92.1 percent release rate achieved a year ago.
Notably, the Department of Agriculture (DA) continued to be a primary bottleneck. Of its ₱169 billion adjusted program for 2026, the DA has released only ₱107.7 billion, or 63.7 percent of its allocation, a sharp decline from last year, when the department had already utilized 92.6 percent of its budget.
Similarly, the Department of Education (DepEd) saw its release rate drop from 94.8 percent in 2025 to 85.5 percent this year. This translated into the release of ₱821.8 billion against its ₱961.3 billion allocation.
Consequently, the General Appropriations Act (GAA) rollout slowed to 86.9 percent as of end-June, down from the 90 percent recorded during the same period in 2025.
This slowdown was primarily driven by delays within executive departments, which saw their collective release rate fall to 90.9 percent from 94.0 percent last year.
Meanwhile, Special Purpose Funds (SPFs) actually showed improved momentum, reaching a 66.3 percent release rate for their total adjusted allocation of ₱719.4 billion, up from 62.3 percent in June 2025.
Meanwhile, automatic appropriations remained a steady anchor for fiscal activity, maintaining an 89.8 percent release rate.
Recall that 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 full release at nearly ₱94 billion.
Funds for retirement and life insurance premiums (RLIP) totaled ₱82.9 billion to support personnel benefits.
Despite the broader slowdown, several key departments demonstrated high efficiency. Notably, the Department of Public Works and Highways (DPWH) accelerated significantly, reaching a 99.5 percent release rate for its ₱530.1 billion allocation.
Similarly, the Department of Transportation (DOTr) improved its pace to 91.5 percent (up from 87.4 percent in 2025), while the Department of National Defense (DND) and the Department of Social Welfare and Development (DSWD) maintained strong release rates of 95.5 percent and 99 percent, respectively.
As of end-June, the government held an unreleased balance of ₱684.6 billion against its original 2026 program.

Related Tags

Budget 2026 Budget Department of Budget and Management (DBM)
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