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Manila Bulletin devider Business devider Banking & Finance devider DPWH, DepEd drag gov't cash use in H1, leaving ₱84 billion idle

DPWH, DepEd drag gov't cash use in H1, leaving ₱84 billion idle

Published Jul 23, 2026 01:49 pm

At A Glance

  • Government agencies' spending efficiency weakened in the first half of 2026, with slower utilization of cash allocations leaving ₱84.3 billion in unused cash authority, largely due to lower fund utilization by the education and public works sectors.

Government agencies’ spending efficiency weakened in the first half of 2026, with slower utilization of cash allocations leaving ₱84.3 billion in unused cash authority, largely due to lower fund utilization by the education and public works sectors.

The latest Department of Budget and Management (DBM) data showed that the overall utilization rate for notices of cash allocation (NCAs) stood at 96.9 percent in June, a 2.1-percentage-point (ppt) decline from the 99 percent recorded in June 2025.

Total fund releases increased to ₱2.74 trillion, 10 percent higher than the ₱2.49 trillion recorded a year ago. Of the total amount released, ₱2.65 trillion was utilized. This left ₱84.3 billion in unused cash authority by the end of June, more than triple the ₱26.4 billion left unused a year ago.

Under the government’s accounting framework, NCAs serve as the primary disbursement authority, allowing agencies to pay for contracted works and services. High utilization typically suggests more efficient procurement and administrative implementation of national programs.

Several major agencies saw significant declines in their cash utilization rates. The Department of Public Works and Highways’ (DPWH) cash utilization fell from 99 percent to 87.1 percent, leaving ₱35.3 billion in unused cash—the largest among departments.

This came alongside a massive reduction in its total NCA releases, which fell from ₱508.7 billion to ₱274.1 billion.

Similarly, the Department of Education (DepEd) saw its utilization rate dip from 100 percent to 96.3 percent, leaving ₱16.4 billion unused—nearly 10 times the ₱1.7 billion recorded a year ago. The Department of Social Welfare and Development (DSWD) also fell from a perfect 100-percent utilization rate to 94.3 percent, with unused NCAs surging to ₱11.1 billion.

Other agencies reporting lower utilization rates included the Department of Transportation (DOTr), which fell from 98 percent to 85.5 percent, and the Presidential Communications Office (PCO), which dropped from 90 percent to 78.2 percent.

Notably, the Office of the President (OP) saw its utilization rate plunge from 94 percent to 64.1 percent, leaving ₱3.3 billion unused. The Civil Service Commission (CSC) also experienced a notable decline, with its utilization rate dropping from 100 percent to 74.7 percent.

Additionally, the Department of Finance (DOF) saw its utilization rate fall to 93 percent from 98 percent in June 2025. This decline was accompanied by a sharp reduction in total releases to the department, which dropped from ₱47.9 billion to ₱12.8 billion.

Some agencies, meanwhile, posted improvements. The Department of Agriculture (DA) raised its utilization rate from 82 percent to 88.1 percent. The Department of National Defense (DND) maintained a near-perfect utilization rate of 99.8 percent, up slightly from 99 percent. The Judiciary, the Commission on Elections (Comelec), and the Office of the Ombudsman all achieved a perfect 100-percent utilization rate by the end of June.

Related Tags

Department of Budget and Management (DBM) Budget 2026 DPWH DepEd
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