THE cash utilization rate of government agencies hit 94% at the end of July, the Department of Budget and Management (DBM) said.
The National Government, local governments, and government-owned and -controlled corporations used P2.81 trillion worth of notices of cash allocation (NCAs) issued during the period. Unused NCAs amounted to P178.16 billion.
The cash utilization rate at the end of July was level with the 94% year-earlier pace.
NCAs are a quarterly disbursement authority that the DBM issues to agencies, allowing them to withdraw funds from the Bureau of the Treasury for their spending needs.
In the seven months, line departments used P2.06 trillion or 92% of their allotments, while P171.50 billion remained unutilized.
The Department of Migrant Workers and the Commission on Audit were the only agencies that posted a utilization rate of 100% at the end of July.
This was followed by the departments of Foreign Affairs (98%), Tourism (97%), Education (97%) and Finance (96%).
State Universities and Colleges and the Commission on Human Rights used 95% of their budgets.
The Department of Information and Communications Technology posted the lowest usage rate of 64%.
Budgetary support to state-run firms was 98% utilized with allocations for local government units at 99%.
During the launch of the DBM’s Budget ng Bayan Monitor on Wednesday, Budget Secretary Amenah F. Pangandaman said the DBM will cut the budgets of underperforming agencies.
Among those rated “unsatisfactory” in the use of their budgets were the Bureau of Customs and the Commission on Higher Education.
According to its Status of Allotment Releases report, the DBM said it had released 93.8% or P5.936 trillion of this year’s budget at the end of July. — Aubrey Rose A. Inosante