IN a recent report by the National Economic Development Authority (NEDA), the Philippines recorded a deceleration in GDP growth during the second quarter of the year.
The budget department has responded to this.
The Department of Budget and Management disclosed that a contributor to the slowdown in the country’s gross domestic product (GDP) growth is related to government spending.
During a press briefing at Malacañang on Tuesday, DBM Secretary Amenah Pangandaman stated that national government agencies were unable to disburse over 170 billion pesos of available funds, leading to a decrease in the contribution of government spending to the country’s GDP.
Pangandaman emphasized the importance for government agencies to expend funds and implement projects “on time.”
“Based on our data, if we were only able to disburse at least 65 billion pesos— meaning our government spending wouldn’t be negative seven, it would just be zero. Our GDP growth should be 5.3%. So with that, you will see how important the budget that we provided for the national government is,” Sec. Amenah Pangandaman, Department of Budget and Management said.
On August 9, the DBM issued a Circular instructing all agencies to provide “catch-up plans” for their project implementations.
If a government agency still fails to appropriately spend its budget, Pangandaman emphasized that it could affect its future proposed budgets.
“Their future budgets, their proposals, will be affected. But during our meeting last week with the President, the agencies that are lagging were there, and all of them committed to the President that they will fast-track the implementation of their projects and programs,” Pangandaman said.
DBM names top 5 less spending agencies
Meanwhile, DBM records stated that as of June 30, 2023, the top five departments with the lowest obligation rates or slowest expenditure of funds for their programs and projects are the Department of Information and Communication Technology (DICT), Commission on Elections (COMELEC), Department of Agrarian Reform (DAR), Department of Social Welfare and Development (DSWD), and the Department of Energy (DOE).
“They are at least at the top, but the circular we provided is for all government agencies.”
“Their obligation rate is low— it means you have already given them the allotment, so when you have a Special Allotment Release Order (SARO), you can already bid. A significant portion of that fund is still unobligated, meaning you haven’t bid it yet,” she added.
Pangandaman previously mentioned that the agencies’ low disbursement is due to procurement-related difficulties.
This includes the substantial outstanding checks recorded at the end of June 2023 and billing concerns from suppliers or creditors, among others.
