DepEd budget expose billions in unspent funds

By: Cristina Eloisa Baclig - 3 hours ago

DepEd budget expose highlight billions in unspent funds

DEPARTMENT OF EDUCATION Status of Funds. Inquirer file photo

MANILA, Philippines—As debates intensify over the Department of Education’s (DepEd) P12 billion budget cut for 2025, they expose a critical issue: the department’s persistent struggle to utilize billions in allocated funds.

As part of the overall budget reductions, P10 billion will be cut from the DepEd’s Computerization Program. This program aims to enhance the digital infrastructure in public schools by providing essential Information and Communications Technology (ICT) equipment, network systems, software, and internet connectivity.

According to DepEd, the goal of the program is to improve access to technology, enhance teaching and learning outcomes, and bridge the digital divide within the education sector.

Education Secretary Sonny Angara expressed dismay over the budget reduction, particularly its impact on the Computerization Program.

“P10 billion was cut from the proposed 2025 computerization program of the DepEd. That could have funded thousands of computers/gadgets for our public school children. Infrastructure is important, but so is investing in our people and human capital. The digital divide will widen,” Angara said on X.

“Sad to learn that both Houses of Congress have decided to decrease by P12 billion the budget the President proposed for DepEd for 2025. This reverses a trend in recent years where Congress adds even more to the education budget (save for one year during the pandemic),” he added.

READ: DepEd budget cut screams admin’s anti-education policy — Castro

However, lawmakers defending the cuts argue that DepEd’s low fund utilization rates justify the reductions.

Conflicting claims on utilization rates

Despite receiving substantial budgets for programs like the Computerization Program, large portions still need to be spent, raising concerns about efficiency, accountability, and the department’s ability to deliver on its mandates.

A source from the Department of Budget and Management (DBM) explained how government funds are managed and where the bottlenecks often occur:

Appropriations: Congress approves the budget (GAA) and authorizes spending.
Allotments: The DBM releases funds to agencies like DepEd.
Obligations: The agency commits the funds for projects, such as procurement of goods and services.
Disbursements: Payments are made once the deliverables, like computers or school facilities, are fulfilled.

The problem often arises at the obligation and disbursement stages, where, in this case, significant portions of DepEd’s budget remain unspent. Official data shows that during the leadership of Vice President Sara Duterte, these delays have persisted.

Duterte’s departure as DepEd chief in June 2024 has only deepened concerns about the agency’s ability to fully utilize its budget allocations.

GRAPHIC: Ed Lustan / INQUIRER.net

For instance, of the P18 billion allotted for the Computerization Program in 2024, only P2.1 billion (11.92 percent) had been obligated as of June. In 2023, while P20.5 billion was allocated, only P10.2 billion was obligated, leaving billions unused.

This underutilization has prompted lawmakers to question the need for additional funds. As one DBM source pointed out: “Kung may P35 billion na unobligated pa mula 2022, paano nila magagastos ang hinihingi nilang dagdag na P10 billion? Ang hindi nagagamit na pondo ay sayang.”

(If there is still P35 billion in unobligated funds from 2022, how will they spend the additional P10 billion they are asking for? Unused funds are wasted.)

Senate finance panel chair Sen. Grace Poe shared similar concerns, citing reports from the Commission on Audit (COA).

“We also took note of COA’s finding that only 50 percent of the 2023 budget for the Computerization Program was utilized. We must see to it that all of the program’s systemic problems such as procurement delays be addressed first before allocating the corresponding budget increase,” Poe said.

The COA report revealed that only P2.18 billion out of P11.36 billion allocated for computers, laptops, and television sets for e-learning had been utilized. The report also highlighted the non-delivery of thousands of laptops intended for teaching and non-teaching personnel in 2023, along with a persistently low teacher-to-computer ratio, further hindering the program’s effectiveness.

READ: Solons blast low budget use, non-delivery of laptops of DepEd under Sara

However, DepEd and its allies have pushed back on the criticism. Angara claimed the utilization rate for the Computerization Program had improved significantly, surpassing 90 percent in 2023, and attributed earlier discrepancies to miscommunication.

In a recent radio interview, DepEd Undersecretary for Finance Analyn Sevilla clarified that P28.5 billion of the P32 billion allocated for the DepEd Computerization Program from 2022 to 2024 has already been obligated, slightly contradicting Angara’s earlier claims.

“Out of a total budget of P32 billion for the DepEd Computerization Program (DCP) from 2022 to 2024, P28.5 billion, equivalent to 89 percent, has been obligated as of November 30, 2024,” said Sevilla.

READ: DepEd computer program utilization rate at 90 percent – Angara

Meanwhile, 1-Rider Party-list Rep. Ramon Rodrigo “Rodge” Gutierrez emphasized that the budget cuts to the Computerization Program should not be seen as an attack on DepEd but rather as a push for greater transparency and responsible use of funds.

READ: Solon says P10-billion DepEd’s budget cut a call for accountability

“Secretary Angara may argue that education funding is sacrosanct, but Congress cannot keep throwing good money after bad. This is not about depriving education; it’s about ensuring proper fund use and accountability,” Gutierrez said, referencing issues raised during Vice President Duterte’s tenure.

READ: Solons blast low budget use, non-delivery of laptops of DepEd under Sara

“Now that he’s education secretary, he should focus on fixing DepEd’s internal mess instead of crying foul about budget decisions,” Gutierrez added.

The bigger picture

While the budget cut has sparked widespread concern, lawmakers also argue that the reduction is more about reallocating funds than depriving the education sector.

“Funds are still available for the purchase of computers and the overall budget of DepEd increased. […] This is a testament to our continuing commitment to prioritize the education sector in line with the mission of our new secretary,” Poe said, emphasizing that the reduction involves adjustments to specific programs rather than an overall decrease in funding.

“This is why we more than doubled the budget for teaching supplies allowance from P4.825 billion in 2024 to P9.948 billion next year,” the senator said.

“Priorities had to be weighed and certain cuts on some programs had to be made. Ultimately, our goal is to ensure that every peso allocated serves the real needs of our educators and learners,” she added.

READ: 2025 DepEd budget still tops 2024 level, Poe clarifies

President Ferdinand Marcos Jr. pledged on Monday (Dec. 16) to restore the P10 billion slashed from DepEd’s proposed budget, clarifying that the adjustment would not involve a line-item veto of the provision in the P6.352-trillion 2025 General Appropriations Bill (GAB).

In an interview, Marcos expressed optimism that a resolution could be reached before he signs the GAB, emphasizing that the cut to the DepEd’s Computerization Program ran counter to his administration’s education priorities.

“We are still talking about it and trying to find a way, and I think we’ll still be able to do something. We are working on that item because it is very necessary,” the President stated.

He explained that the agency’s original budget request of P12 billion for its Computerization Program was already insufficient to meet the department’s current needs, let alone address the demand for expansion.

“The original request of P12 billion is only sufficient to maintain what they are already doing when, in fact, they have to do more. So we have to figure that out. We’re working on it to make sure that we will restore it,” Marcos said.

READ: Marcos says he’s working on restoring DepEd budget cut
READ: Marcos wants DepEd, DBM to coordinate on restoring education budget cut

In response, Senator Francis “Chiz” Escudero, former chair of the Senate finance committee, pointed to DepEd’s significant unspent allocations in recent years. He cited official data showing the following unused funds:

P10.034 billion of the P13.068 billion allocated for the computerization program in the 2022 General Appropriations Act (GAA) remains unobligated. Escudero said this would be reverted to the National Treasury if DepEd failed to obligate and use the amount by the end of 2024.
P10.2 billion out of P20.4 billion allocated in the 2023 GAA for the same program is unspent.
P15.9 billion of the P18.08 billion allocated for the computerization program in the 2024 budget remains unused.

READ: Escudero: DepEd’s P36B unused fund can be used to augment its budget

Escudero proposed that these unspent funds, totaling P36.1 billion over three years, could be used to augment DepEd’s 2025 budget instead of reallocating other critical items.

“This way, [the President] need not veto other line items in the [GAB] in order to provide the DepEd’s additional funds,” Escudero said.

He underscored that the unused amount is more than three times the P10 billion that DepEd is requesting to be restored in its 2025 budget.

“So there are funds that the President may tap,” Escudero explained.

“There are many sources to augment (DepEd’s budget). DepEd and its secretary should know this because the submissions for the budget deliberations, which revealed their dismal fund utilization, came from them,” he added.