The Department of Human Settlements and Urban Development (DHSUD) registered the slowest mobilization of cash allocation in the first three months based on data from the Department of Budget and Management (DBM).
The DHSUD posted a 78 percent utilization of its notice of cash allocation (NCA) during that period.
The NCA is the authority given by the DBM to government servicing banks to cover cash requirements of government agencies. The DBM said an agency with a higher utilization rate means it is implementing projects and programs faster.
Other government agencies which reported faster but sub-90 percent utilization rates were the Department of Agriculture with 85 percent, the Department of Energy with 87 percent, and the Department of Agrarian Reform with 89 percent.
Data from all government agencies revealed the overall utilization rate accelerated to 99 percent in March from 83 percent in February and from 78 percent in January.
This translated into unused cash allocation worth P7.2 billion out of P804.6 billion as of 31 March 2025.
These figures excluded data from government owned and controlled corporations and local government units which both registered 100 percent utilization.
DBM Secretary Amenah Pangandaman said low utilization rates of government funds can stem from several factors.
“The agency’s proposals for projects should be clear, comprehensive, and complete in terms of submitted supporting documents, such as feasibility studies and annual procurement plans,” she said.
“We view low utilization rate as the agency’s limited capacity to utilize new funds,” she continued.
Pangandaman said the public could expect higher efficiency and transparency in budgeting by government agencies under the Public Financial Management (PFM) Reforms Roadmap 2024-2028.
The PFM Roadmap covers budget planning and linkages, cash management, public asset management, and government procurement of materials and services.