Government agencies’ use of the cash allocated to them dropped slightly to 92 percent in the first four months of the year, compared with 93 percent recorded a year earlier, the Department of Budget and Management (DBM) said on Monday.
Data available on the DBM website showed that in January to April 2025, the notice of cash allocation (NCA) utilization rate corresponded to P1.494 trillion, out of the P1.626 trillion released for the period.
The unutilized NCAs in the four-month period amounted to P132.406 billion.
An analyst said this could be the effect of either the election ban on government spending, or project delays.
In the comparable period in 2024, the released NCA amounted to P1.399 trillion, of which P1.3 trillion was utilized.
A higher NCA utilization rate normally indicates better capacity by line agencies to quickly disburse their allocated funds and implement their programs and projects.
The DBM was sought for comment on the NCA utilization performance, but has not responded as of press time.
Line depts show lower 89%
DBM data showed line departments, excluding GOCCs and LGUs, utilized P1.065 trillion of the P1.195 trillion in NCAs released to them in January to April 2025, equivalent to an 89 percent NCA utilization rate.
John Paolo Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the NCA utilization figures as of April may suggest slower-than-expected implementation of programs and projects in April.
“This could temporarily dampen the fiscal multiplier effect of government spending on the economy in Q2. It may also reflect capacity constraints or delays in procurement, particularly at the agency or local government unit level,” Rivera said.
“If this trend persists into May and June, government spending may contribute less to Q2 GDP, potentially counteracting the gains from election-related consumption or infrastructure disbursements,” he added.
However, Rivera said this does not automatically signal weakness.
“It may be a timing issue rather than a trend, especially if backloading occurs in the latter half of Q2. This can also be due to election season when government spending is tempered,” Rivera said.
Reinielle Matt Erece, economist at Oikonomia Advisory & Research Inc., said that despite the drop in NCA, government spending remains to be a strong driver of growth amid faltering investment inflows and a wide trade deficit.
“However, the dip in the NCA calls for the need for better transparency and fiscal practices to better utilize the country’s budget on a timely and effective manner,” Erece said.
GOCCs use 98%; LGUs 100%
Regarding NCAs released for budgetary support to government-owned and -controlled corporations (GOCCs) as of April, 98 percent was utilized, equivalent to P44.28 billion, while 100 percent of the NCA released to local government units was used up, amounting to P383.897 billion, the DBM data showed.
