THE cash utilization rate posted by government agencies hit 98% at the end of December, the Department of Budget and Management (DBM) said.
In a report on Tuesday, the DBM said the National Government, local governments and state-owned firms used 98% of the P4.42 trillion in funding allocated to them based on the year-end tally for Notices of Cash Allocation (NCAs). The year-earlier utilization rate was 96%.
The remaining unused NCAs totaled P82.63 billion at the end of December.
According to the DBM, line departments used 97% of their NCAs, leaving P81.58 billion unused.
The departments of National Defense and Transportation, Office of the Ombudsman, Commission on Audit, Commission on Human Rights, and the Judicial branch were at 100% usage for the year.
Meanwhile, the Department of Information and Communications Technology posted the lowest utilization rate of 72%.
Budgetary support to government-owned companies as well as allotments to local government units were 100% used. During the year, local governments were issued P225.96 billion.
NCAs represent approval from the DBM to disburse funds allocated to agencies. NCA utilization is deemed a proxy for effective spending on programs and projects.
At the end of November, the budget release rate was 97.4%.
The government initially planned a P5.024-trillion budget for the year, but subsequently raised it to P5.15 trillion. — Luisa Maria Jacinta C. Jocson