Philippine government cash utilization eases to 96.6% by end-September

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PH cash utilization September 2023

Highlights

Philippine government agencies utilized P3.861 trillion of P3.998 trillion in cash allocations by end-September, achieving a 96.6% utilization rate versus 97.3% a year earlier.
Departments showed varying performance, with the Office of the Ombudsman, Judiciary, and constitutional commissions at or near 100%, but the Presidential Communications Office lagged at 75.3%.
Budgetary support to government-owned and -controlled corporations reached 99.7% utilization (P204.618 billion), and local government units achieved a 99.5% usage rate.

September allocation use across agencies

As reported by BusinessWorld, citing the Department of Budget and Management, government agencies utilize P3.861 trillion of the P3.998 trillion in notices of cash allocation issued by the end of September, equivalent to a 96.6% cash utilization rate. That compares with 97.3% in the same period a year earlier, while unused NCAs stand at P136.499 billion.

NCAs are cash authorities issued by the DBM that set the maximum amount agencies can withdraw or disburse through authorized government servicing banks to settle obligations. By the end of September, line departments utilize P2.6 trillion, or 95.2% of their cash allocations, leaving P130.607 billion unused.

The Office of the Ombudsman records a 100% utilization rate with no unused NCAs. Other institutions with rates rounding up to 100% include the Judiciary, Commission on Audit, Commission on Elections and Commission on Human Rights, each posting only small remaining balances.

Low and high performers in the utilization table

Among agencies posting utilization above 99% are the Department of the Interior and Local Government at 99.9%, the Department of Foreign Affairs at 99.8%, the Department of Human Settlements and Urban Development at 99.8%, and state universities and colleges at 99.8%. These figures indicate that most major spending units are still deploying nearly all of their allotted cash by the end of the period.

At the lower end of the table, the Presidential Communications Office posts the weakest rate among department-level entries at 75.3%. It is followed by the Office of the President at 76.3%, the DBM at 79.5%, the Civil Service Commission at 81.4%, and the Department of Agriculture at 84.8%.

Cash released for budgetary support to government-owned and -controlled corporations is 99.7% utilized, or about P204.618 billion. NCAs released to local government units are 99.5% utilized, while allocations issued to the Metropolitan Manila Development Authority are 99.8% used.

Our earlier analysis of planned Philippine sovereign bond reforms looked at the shift to a new pricing convention for peso government bonds in 2027 and the targeted inclusion in J.P. Morgan’s GBI-EM, aimed at improving comparability, liquidity, and foreign participation. We also noted that any benefits—such as lower borrowing costs—depend on global rates and fiscal credibility, and translate into real growth only if the resulting fiscal space is channeled into productive, well-executed spending while broader capital-market constraints are addressed.

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