THE underspending in late 2025 following the flood control corruption scandal has brought down the National Government’s (NG) cash utilization rate to just under 98%, the Department of Budget and Management (DBM) said in a report.
The DBM said the NG, local governments and government-owned firms used P4.847 trillion, or 97.7%, of the notices of cash allocation (NCAs) issued to them in 2025. The year-earlier rate had been 99%.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the NG turned cautious and prudent after flood control-related corruption led to a shake-up in the Department of Public Works and Highways and implicated legislators and a small group of well-connected contractors.
He said that the underutilization amounts to a “sacrifice” by the government to keep corruption from spreading and undermining confidence in the government.
“However, the government’s catch-up spending to make up for the underspending since late 2025, now backed by anti-corruption measures and other reforms to better level up governance standards, will help increase budget utilization in 2026,” he said via Viber.
“This would help pump-prime or expedite economic growth and development that is more inclusive, as well as help (prop up) investment confidence,” he added.
The NCA is authorizes central, regional and provincial offices and their operating units to draw funds from government banks for their cash requirements.
The unused NCAs totaled P114.527 billion at the end of 2025, according to the report.
Line departments used 97% of their allotments, equivalent to P3.566 trillion of the P3.678 trillion NCAs issued.
In 2025, two offices — the Judiciary and the Ombudsman — hit 100% utilization.
Three agencies posted 99.9% utilization — the Office of the Vice-President, the Department of Foreign Affairs, and the Department of Social Welfare and Development.
Meanwhile, three agencies tallied utilization rates of below 80%: the Commission on Elections (72%), the Department of Energy (72.4%), and the Department of Information and Communications Technology (77.8%).
Budgetary support to government-owned and -controlled companies was 99.2% used, while the corresponding rate for local government units was 99.9%. — Justine Irish D. Tabile
