GOVERNMENT agencies’ cash usage rate was 78% in the first five months, much lower than the year-earlier level of 92%, the Department of Budget and Management (DBM) said.
The DBM tracks an indicator called Notices of cash allocation (NCAs) issued to line agencies, which is an authorization to spend allotted funds.
According to the DBM’s Status of NCA Utilization report, it said used cash allocations totaled P1.42 trillion out of, P1.82 trillion released in the five months to May, leaving unused NCAs of P400.399 billion.
The five-month rate was higher than the 63% logged in the four months to April.
In May, NCA usage was P333.061 billion, exceeding the P94.082 billion released that month. However, usage fell compared with April’s P445.89 billion.
In a text message, DBM Assistant Secretary Rolando U. Toledo said the NCA usage was higher than releases because the NCAs released in April cover the cash requirements for the second quarter.
In April, NCAs released hit P1.075 trillion with only P445.89 billion used.
“Subsequent releases in May (P94.08 billion) are then in addition to those released in April. Hence, cash utilization in May (P333.06 billion) includes those released in April,” Mr. Toledo added. — Beatrice M. Laforga