MANILA, Philippines — The government has increased the issuance of Cash Allocation Notices (NCAs) and improved its utilization rate in the first half after the record budget of 5.02 billion pesos for this year.
The latest data from the Department of Budget and Management (DBM) showed NCA releases at the end of the second quarter improved by 5% to 2.03 trillion pesos from 1.94 trillion pesos at the same time. period last year.
In the second quarter alone, NCA issuance increased by 1.87% to P1.15 trillion.
In turn, the utilization rate of ANCs increased to 99% in the first half of 2022, compared to only 97% in 2021. Most agencies recorded a utilization rate above 90%, with 12 departments capable of use all of their ANCs.
Nearly 70% of NCA releases have been secured by operational departments at 1.42 trillion pesos. The remaining 30%, or P617.84 billion, was allocated to state owned and controlled corporations (GOCCs) and local government units (LGUs).
With a rate of 99%, the government used 2,009,000 billion pesos on the NCAs published in the first half of the year, while 24.22 billion pesos were not used from January to June this year.
ACNs are disbursement orders from the DBM to the government banks ensuring the release of funds to the agencies. Government agencies are expected to use ACNs to pay for the cash requirements of their programs and projects.
A higher utilization rate indicates a greater ability of agencies to implement their programs and projects.
Based on DBM data, agencies that reported 100% utilization of their ANCs include the Office of the Vice President as well as the Ministries of Education, Foreign Affairs, Health, Interior and Human Resources. Local Governments and National Defense.
Also included are the Department of Transport, the Judiciary, the Civil Service Commission, the Audit Commission, the Office of the Ombudsman and the Human Rights Commission. Allocations to GOCCs and LGUs were also fully utilized during the period.
In contrast, the Department of Information and Communications Technology recorded the lowest utilization rate at 63%.
The Ministry of Labor and Employment, the Ministry of Tourism and the Electoral Commission also posted a utilization rate of less than 90%.