DICT, DMW flagged by DBM for low budget optimization

By Jasper Emmanuel Y. Arcalas @jearcalas

Department of

DBM secretary Amenah F. Pangandaman disclosed this during the senate committee on Finance hearing on the proposed 2024 nat ional ex penditure Program (neP) attended by the Development Budget coordination committee (DBcc) Pangandaman said the obligation rate of the Dict as of end-June stood at 9.2 percent while the DMW posted an obligation rate of 14.3 percent. t he obligation rate measures the obligations made by a state agency as a share of its budget allotment, according to the DBM. the DBM defines obligation as the payments committed by government agencies for their contracts of goods and services.

Pangandaman said the c o mmission on elections posted a 26.1 percent of obligation rate while the Department of Agrarian reform recorded a 28.9 percent obligation rate as of end-June.

Pangandaman also disclosed the obligation rates of the following agencies: Department of social Welfare and Development (34.2 percent), Department of energy (34 percent), of fice of the Press secretary (34 percent), and Department of tourism (35 percent). t he other executive offices of the national government posted an 18.4 percent obligation rate as of end-June. t he low obligation rates of certain state agencies have been flagged by economic officials as one of the reasons for the slower-than-expected economic performance in the second quarter. in fact, the DBM has given state agencies and corporations until september 15 to submit their catch-up plans to accelerate spending and address the government’s “underperforming” expenditure level as the economy shows signs of slowing down. t he national government’s spending as of end-June is below the P2.582-trillion disbursement program for the first semester by P170.5 billion or 6.6 percent. (Related story: https://businessmirror.com.ph/2023/08/11/govern- ment-units-firms-told-to-hastenspending/) t h e DBM explained that the reasons behind the first semester underspending were the following: some government agencies experienced procurement problems, lower interest payments, some outstanding checks that have not been converted to cash, and some unimplemented social programs of certain agencies. Finance secretary Benjamin e Diokno earlier disclosed that he remains confident that the country would still achieve a 6-percent fullyear economic expansion this year on the back of an anticipated ramped-up government spending despite a tepid second quarter GDP growth.

Diokno emphasized that an “aggressive” catch-up plan for government infrastructure projects coupled with “deliberate spending” by government agencies are “essential” in helping the country’s economy meet the 6 percent to 7 percent growth target for 2023. (Related story: https://businessmirror. com.ph/2023/08/14/meetinggdp-goal-needs-catchup-spending-boost-2/)