DBM: Govt Reached Record-High ₱4.42 Trillion Cash Allocations In 2022

The Department of Budget and Management (DBM) said 2022 cash allocations last year reached a record-high ₱4.42 trillion to finance education and infrastructure projects and the higher share at the local level.

DBM data showed notice cash allocations (NCAs) for 2022 increased by 7.76% to ₱4.42 trillion from ₱4.1 trillion in 2021.

Moreover, the utilization rate for NCAs increased to 98% from 96% in 2021, with the government utilizing a ₱4.34 trillion budget, leaving ₱82.63 billion unused.

NCAs are DBM disbursement orders to government banks servicing the release of funds to agencies. State agencies are expected to use the NCAs to pay for the cash requirements of their programs and projects.

The more cash utilized indicates the greater capacity of agencies to implement their programs and projects.

Line departments secured nearly 70% of NCA releases at ₱3.08 trillion. The remaining 30% or ₱1.34 trillion was allocated to government-owned and controlled corporations and local government units (LGUs).

LGUs got the highest cash releases at ₱1.11 trillion, covering internal revenue allotment, special shares, and other transfers.

Data showed that last year, the Department of Public Works and Highways (DPWH) utilized 99% of NCAs worth ₱725.73 billion. The Department of Education also had a high utilization rate of 98% with cash allocations worth ₱641.75 billion.

Other agencies also posted an above 90% utilization rate of their NCAs. The Department of Information and Communications Technology recorded the lowest rate of 72% for the ₱7.33 billion NCAs it obtained. 

Likewise, the Department of Labor and Employment spent only 74% of its ₱63.8 billion, while the Commission on Elections used up 78% of its ₱25.72 billion NCAs.

Source: Philstar