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Manila Bulletin devider Business devider Banking & Finance devider DPWH, DepEd hold bulk of unused cash use despite improving gov't spending efficiency in July

DPWH, DepEd hold bulk of unused cash use despite improving gov't spending efficiency in July

Published Aug 31, 2026 04:24 pm

At A Glance

  • Government departments and special purpose funds slightly improved spending efficiency by end-July 2026, but unused cash authority remained concentrated in public works and education.

Government departments and special purpose funds (SPFs) slightly improved their spending efficiency by end-July 2026, but unused cash authority remained concentrated in public works and education.

The latest Department of Budget and Management (DBM) data showed that the overall utilization rate for notices of cash allocation (NCAs) stood at 94.6 percent as of end-July 2026, a 0.6-percentage-point (ppt) increase from the 94 percent recorded in July 2025.

Total NCA releases rose to ₱3.13 trillion, roughly 4.7 percent higher than the ₱2.99 trillion recorded a year ago. Of the total, ₱2.96 trillion was utilized, leaving ₱169.9 billion in unused cash authority as of end-July, down from ₱178.2 billion a year ago.

Under the government’s accounting framework, these notices act 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.

Despite the overall national improvement, several major departments saw significant declines in their cash utilization rates.

Cash utilization by the Department of Public Works and Highways (DPWH) dropped from 94 percent in July 2025 to 86.2 percent in July 2026, leaving ₱44.2 billion in unused cash—the largest among departments. This came alongside a massive cut in its total NCA releases, which fell from ₱610 billion to ₱320.1 billion.

Similarly, the Department of Education (DepEd) saw its utilization rate dip from 97 percent to 93.1 percent, leaving ₱35.3 billion unused—more than triple the ₱10.7 billion recorded a year ago. The Department of Transportation’s (DOTr) cash utilization also fell from 92 percent to 85.7 percent, leaving ₱7 billion unused.

Other agencies reporting declines were the Presidential Communications Office (PCO), which dropped from 86 percent to 72 percent; the Office of the President (OP), from 89 percent to 69.4 percent; and the Civil Service Commission (CSC), from 92 percent to 73.3 percent.

Further, the Department of Finance’s (DOF) utilization rate fell from 96 percent to 90 percent, leaving ₱1.5 billion unused. This decline came alongside a massive reduction in total releases to the department, which plummeted from ₱50.8 billion to ₱15 billion.

In contrast, several departments and agencies showed notable resilience and improved efficiency. For one, the Department of National Defense (DND) saw a solid improvement, with its utilization rate rising to 98.4 percent from 93 percent a year ago.

Other agencies that posted improved utilization rates included the Department of Agriculture (DA), which rose to 79.4 percent from 72 percent; the Office of the Ombudsman, which increased to 96.5 percent from 93 percent; and the Department of Social Welfare and Development (DSWD), which inched up to 91.4 percent from 91 percent.

Under SPFs, allocations to local government units (ALGU) achieved a 100-percent utilization rate, up from 99 percent.

However, some agencies that previously reported solid performance lost ground. The Judiciary saw its utilization rate drop to 91.8 percent, while the Commission on Elections (Comelec) fell to 76.9 percent.

Related Tags

Department of Budget and Management (DBM) DPWH DepEd
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