Budget chief vows to improve level of spending in gov’t

MANILA, Philippines—Executive departments and national agencies are expected to improve spending activities in the next few months as expenses so far this year continue to be lower than year-ago levels.

Budget Secretary Florencio B. Abad said on Monday that some agencies have, in fact, improved their disbursement performance in the five months to May, but others should still improve their spending level.

He was reacting to criticisms that the government was not spending enough, possibly compromising key social services and development programs.

“The departments and agencies are now catching up with their spending,” Abad said. “With their catch-up plans in place, we are expecting further improvements in the next months ahead.”

The budget chief said such agencies spent at least P402.8 billion from January to May through disbursements implemented under notices of cash allocation (NCAs).

NCAs are disbursement authorities issued by the Department of Budget and Management to central, regional and provincial offices and operating offices to cover the cash requirements of departments and agencies.

Top spenders in the five-month period were the Departments of Education (DepEd), National Defense (DND), Interior and Local Government (DILG), Public Works and Highways (DPWH), Health (DoH), Agriculture (DA), Social Welfare and Development (DSWD), and Transportation and Communications (DoTC).

He said agencies whose disbursement performance during the period improved year on year were the DSWD, DoH, DND and DepEd.

On the other hand, agencies whose disbursement performance slowed down year on year were the DPWH, DA, DoTC and DILG.

“Infrastructure spending of DPWH, DA and DoTC should pick up in the remainder of the year as these agencies have crafted catch-up plans,” Abad said.

He added that in the Cabinet’s upcoming mid-year assessment of the 2011 budget, departments and agencies would present their progress in their catch-up plans and in accelerating its programs and projects.

Earlier, Abad said the DBM has been looking deeper into the “cautious spending mood” recorded in the first quarter when expenses were pegged at a total of P349.3 billion, which was P82 billion, or 19 percent, lower than programmed.

Year on year, first-quarter spending was lower by P50.7 billion, or 13 percent, lower than the P400 billion outturn in 2010.

This, even as the DBM has already front-loaded the release allotments worth P834.2 billion, or 51 percent, of the total P1.645-trillion budget for 2011.

“We have already scheduled a series of consultations with key agencies to help them accelerate the implementation of programs and projects,” Abad said.

“So far, indications point to more caution exercised by agencies in planning and spending funds allotted to them,” Abad added. “Agencies also had to review their cost assumptions so that programs and projects they will implement reflect more realistic costs.”

Abad pointed out the need to streamline agencies’ operations and procedures to accelerate project implementation and to address issues on their absorptive capacity.