The Department of Budget and Management (DBM) said 65.4 percent of the government’s P5.65-trillion allotment for the 2024 national budget and the 2023 continuing appropriations has been obligated as of end-June this year.
DBM Secretary Amenah Pangandaman disclosed this at the 2025 National Budget Deliberations at the House of Representatives yesterday, as she said budget utilization is among those considered in the evaluation of the 2025 budget proposals.
“Out of the P5.652 trillion allotment, P4.147 trillion has been released to national government agencies to implement their programs and projects, 53.8 percent of which has been obligated,” Pangandaman said.
She said a high budget utilization rate reflects the agencies’ absorptive capacity to utilize additional funds.
Based on Pangandaman’s presentation, the departments with the highest obligation rates as of June are the Office of the Presidential Adviser on Peace, Reconciliation and Unity (84.3 percent), National Intelligence Coordination Agency (80.4 percent), Department of Public Works and Highways (70.5 percent), Department of Finance (69.6 percent) and Department of Foreign Affairs (58.5 percent).
“Meanwhile, a low budget utilization reflects the agencies’ limited capacity to spend more funds. Hence, just last month, we issued circular letter number 2024-12, requiring agencies with low obligation rates to submit their respective catch-up plans to improve the delivery of public goods and services,” the budget chief said
“And we will now also be requiring quarterly progress reports or catch-up plans, because the DBM is committed to strictly monitoring agencies budget utilization and proactively taking steps to improve the government’s spending efficiency,” she added.
According to the list of 40 departments in Pangandaman’s presentation, agencies with the lowest obligation rates as of June are the Congress of the Philippines (8.8 percent), Commission on Higher Education (19.2 percent), Department of Migrant Workers (22.1 percent), Department of Human Settlements and Urban Development (24 percent) and Department of Energy (33.8 percent).
The budget chief said that the DBM received budget proposals totaling to P9.2 trillion for fiscal year 2025.
“However, given our limited fiscal space and with our fiscal program in mind as we try to decrease our deficit, and at the same time maximize whatever revenues we raise, we have set the budget ceiling at P6.352 trillion,” Pangandaman said.
