78% of National Budget Released in First Quarter of 2021

The latest data from the Department of Budget and Management (DBM) showed that it has released ₱3.514 trillion to state offices and local government units (LGUs) in the first quarter (Q1) of the year. The DBM also implemented budget cuts to the Department of Agriculture and the Department of Education.

Of the ₱4.5 trillion national budget this year, the ₱3.514 trillion already accounts for 78% leaving ₱991.596 billion left to be released over the remaining nine months.

The allocation rate was roughly similar to the previous year. During Q1 of 2020, it was recorded that 78.4% of the national budget had already been released.

The amount was based on allotment releases issued by the DBM to agencies and LGUs, in order to allow them to fund their programs, projects, and activities for the year.

Likewise, adjustments were made to the budgets of several state agencies, as the government continues to implement belt-tightening measures during the pandemic.

The initial budget for the Department of Agriculture was at ₱68.62 billion until the amount was slashed by ₱21.72 billion, leaving it with ₱46.9 billion. The Department of Education also encountered a budget cut of ₱2.93 billion, from its original ₱557.25 billion to ₱554.3 billion.

There was also a significant reduction in subsidies to government-owned and government-controlled corporations by ₱712.26 million leaving ₱147.48 billion.

Conversely, more funds were allocated to the Department of Public Works and Highways, which drove its budget to ₱710 billion after receiving an additional ₱15.358 billion.

So far, total allotment releases were broken down into ₱2.297 trillion for line departments, accounting for 87% of their budgets for the year. Approximately ₱1 trillion or 70% of the total was released under automatic appropriations.

The DBM also released ₱116 billion from special-purpose funds, which amounts to 26.4% of the total budget. ₱99.77 billion under the enduring allocations from the extended 2020 budget has been released as of Q1.

The agency is drafting an executive order directing state offices to reduce nonessential expenses to be able to allocate more funds for the government’s pandemic response, said Budget Secretary Wendel E. Avisado last week.

Source: Business World