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At a Glance
- The Department of Budget and Management (DBM) is confident that the national government will hit its full-year expenditure target after significantly reducing underspending in the first nine months.
- The balance from the disbursement program for the remainder of the year amounted to P1.407 trillion, which is 26.9 percent of the full-year program.
- Historical trends indicate that government agencies typically expedite obligations and payments before the year-end book closure and the lapse of national cash allotments (NCAs).
- Line departments have until Nov. 15 to submit their requests for additional fund releases and/or cash allocations, as per Circular Letter No. 2023-13 dated Oct. 2, 2023, and pursuant to National Budget Circular No. 590.
- In the third quarter, the pace of disbursements accelerated to 98.9 percent of the P3.862 trillion program, compared to 93.4 percent in the first semester.
- The country’s budget deficit narrowed to P984 billion from January to September, with revenue collections exceeding targets and government expenditure falling short, necessitating increased spending by state agencies.
- Total revenue collection at the end of the third quarter improved by 6.79 percent to P2.84 trillion compared to the same period last year, with both tax and non-tax revenues increasing.
The Department of Budget and Management (DBM) said the national government will meet its full-year expenditure goal as underspending has notably decreased in the first nine months.
According to the disbursement report from the DBM, the department is confident that it will reach the Marcos administration’s P5.228 trillion disbursement target this year due to the accelerated cash releases.
As of September, the remaining balance from the disbursement program for the rest of the year totaled P1.407 trillion, equivalent to 26.9 percent of the full-year program.
“The government is confident that the disbursement program for the year will be met,” the DBM said. “Quicker NCA [national cash allotment] utilization is expected during the fourth quarter of 2023.”
Drawing from historical trends, the DBM noted that government agencies typically expedite obligations and payments prior to the year-end book closure and the lapse of NCAs.
This trend is evident in the NCA disbursement rates during the fourth quarters of 2020 (94.4 percent), 2021 (98.8 percent), and 2022 (99.2 percent), the agency cited.
Furthermore, line departments are required to submit their requests for additional fund releases and/or cash allocations by Nov. 15, as stipulated in Circular Letter No. 2023-13 dated October 2, 2023, and pursuant to National Budget Circular No. 590.
In the third quarter, the pace of disbursements accelerated, reaching 98.9 percent of the P3.862 trillion program for the period, as opposed to 93.4 percent in the first semester.
For this reason, the DBM said the overall underspending was substantially reduced to P40.9 billion or 1.1 percent of the program as of end-September 2023, from P170.5 billion (6.6 percent) in the first half of the year.
“This improvement was credited mainly to the acceleration of infrastructure outlays, particularly by the Department of Public Works and Highways (DPWH), and some partial recovery in MOOE [maintenance and other operating expenses] and subsidy releases,” the DBM said.
From January to September, the government’s budget deficit decreased to P984 billion, with revenue collections surpassing targets.
Moreover, the nine-month budget shortfall is 11 percent lower than the P1.11-trillion target set by the Cabinet-level Development Budget Coordination Committee.
Total revenue collection by the end of the third quarter grew by 6.79 percent to P2.84 trillion compared to P2.66 trillion in the same period last year.
The end-September figure also exceeded the programmed revenue collection of P2.76 trillion by nearly three percent.
Of the total revenues, 90 percent or P2.54 trillion were from tax collections. — Chino S. Leyco
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Credit belongs to: www.mb.com.ph
