GOVERNMENT AGENCIES posted a budget utilization rate of 98.5% in March, behind the year-earlier pace of 99%, the Department of Budget and Management (DBM) said.
In its Notice of Cash Allocations (NCAs) Utilization Report, the DBM said that the National Government, local governments, and state-owned companies used P1.22 trillion out of P1.24 trillion issued NCAs as of the end of March.
Unused NCAs stood at P19.14 billion, the DBM said.
NCAs are quarterly disbursement authorities issued by the DBM to agencies, allowing them to withdraw funds from the Bureau of the Treasury for their spending needs.
In March, line departments used P749.19 billion, or 97.5% of their allotments, while P19.11 billion remained unused.
Six agencies posted a 100% budget utilization rate: the Office of the Vice-President, the Judiciary, the Commission on Audit, the Commission on Elections, the Office of the Ombudsman, and the Commission on Human Rights.
Four had 99.9% utilization rates: State Universities and Colleges and the departments of Foreign Affairs, Migrant Workers, and Transportation.
The departments of Energy, National Defense, and Tourism used 99.8% of their NCAs, while the departments of Education, Health, Human Settlement and Urban Development, Interior and Local Government, and Labor and Em-ployment used up 99.7%.
The Civil Service Commission posted the lowest utilization rate of 58.2% at the end of March.
The other departments with the lowest utilization rates were the departments of Agriculture (84.5%), Social Welfare and Development (86.3%), and Economy, Planning, and Development (87.3%).
Budgetary support to state-run firms, amounting to P87.5 billion, was fully utilized as of the end of March.
Allocations to local government units (LGUs) were 100% utilized, along with NCAs issued to the Metropolitan Manila Development Authority.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said that the utilization rate still reflects some underspending since the latter part of 2025.
“But the latest improvements may have to do with some government catch-up spending,” he said via Viber, citing the increase of utilization from 87% in February.
However, he said government agencies should spend approved funds faster and more effectively.
“There is a need to maximize the use of government funds … since some of these are financed by loans that charge interest rate costs and amid the policy to optimize the use of funds,” he added. — Justine Irish D. Tabile
