The Development Budget Coordination Committee on Friday said government disbursements of funds accelerated to 98.9 percent as of end-September from 93.4 percent in June, nearing the government's full-year target of P3.862 trillion.

DBCC said the disbursement from July to September already amounted to P3.82 trillion.

"DBCC through the Department of Budget and Management shall continue its close coordination with agencies, especially those with low budget utilization rates, through regular meetings focusing on their spending performance and catch-up plans," the budget committee said.

The Department of Budget and Management or DBM said the 7.1 percent decline in government spending in the second quarter restrained economic growth during this period.

DBM said a total of P170 billion was not mobilized in the first half this year as several government agencies struggled with crafting project proposals, monitoring the impact of their projects, and bidding them out.

Economists expect at least 5 percent economic growth in the third quarter which is higher than the 4.3 percent in the previous quarter.

"Supported by the successful submission of agencies' catch-up plans, government spending is expected to further improve during the fourth quarter," DBCC said.

DBCC also urged state universities and colleges, government-owned and controlled corporations, and local government units to use digital technologies to distribute social services faster.

For next year, DBCC said it will be implementing the Early Procurement Activities system which will force agencies to start procurement-related activities once the National Expenditure Program has been submitted to Congress.

Another is the Budget and Treasury Management System which will address delays in submission of billings from suppliers and creditors and delivery of goods and services.