The cash utilization rate of government agencies is at 99 percent as of end-June, data released by the Department of Budget and Management (DBM) showed.
According to the status of notice of cash allocation (NCA) utilization posted on the DBM website, the utilization rate in the first half of this year was faster than the 98 percent posted in the same period in 2023.
The NCA utilization rate in January to June 2024 corresponds to P2.23 trillion out of the P2.26 trillion in NCAs released for the period.
The unutilized NCAs for the period totaled to P21.93 billion.
In the same period in 2023, the NCAs utilized was P2.01 trillion.
NCA refers to the disbursement authority issued by the DBM to cover the cash requirements of the operations, programs and projects of government agencies.
A higher NCA utilization rate demonstrates the capacity of line agencies to quickly disburse their allocated funds and implement their programs and projects.
Line departments utilized P1.65 trillion of the P1.68 trillion in NCAs released to them as of June, equivalent to a 99 percent NCA utilization rate.
As for NCA released for budgetary support to government-owned and -controlled corporations, 99 percent was also utilized, while 100 percent of the NCA released for allotment to local government units was also utilized during the six-month period.
Meanwhile, in a statement over the weekend, budget secretary Amenah Pangandaman said the recently signed New Government Procurement Act (NGPA) is a transformative reform that will modernize and augment public procurement processes in the Philippines by addressing existing loopholes and inefficiencies.
“From my very first day at the DBM, procurement reform has been a paramount priority on my agenda. The signing of the NGPA is a monumental step forward in our pursuit of a more efficient, transparent and accountable government procurement system,” Pangandaman said.
The NGPA brings in electronic procurement through a centralized online system. The eMarketplace will transform the procurement of common-use supplies and equipment by acting as the government’s main e-commerce platform.
“After this signing, we will develop rules and regulations. Within the year, we will have our eMarketplace,” Pangandaman said.
