Government releasing, spending more funds now
MANILA, Philippines—Budget Secretary Florencio B. Abad said that after seven months of state spending, some 21 percent, or P347 billion, remained of the national budget for 2011.
Abad said in a statement that as of the end of July, the Department of Budget and Management had released allotments worth P1.298 trillion, or 79 percent of the P1.645 trillion provided for in the General Appropriations Act of 2011.
The budget chief added that departments and agencies had exhibited “a marked improvement” in the use of funds through notices of cash allocation (NCAs).
Abad said the utilization rate of NCAs increased to 99.5 percent in July alone, from 91.4 percent in the entire first semester.
Abad said actual spending in the first seven months of the year reached P832.3 billion, which was 48.6 percent of the full-year disbursement program of P1.711 trillion.
Abad explained that the amount in excess of the 2011 budget represented funds allotted in the 2010 budget that must be spent this year.
The seven-month spending performance was less by a tenth than the P924.4 bilion recorded in the same period in 2010.
Abad said this was due to less interest payments, which decreased by P13.8 billion to P175.7 billion.
The government also spent less on maintenance expenses, coming in at P98.1 billion, or 10.3 percent less year on year.
“Infrastructure and other capital outlays amounted to P64.5 billion, which is P91.5 billion, or 58.7 percent, lower year on year, due to lower demand for the settlement of accounts payables for projects of the Department of Public Works and Highways,” Abad said.
“Tax subsidies, which amounted to P15.5 billion as of July, were lower by P11.4 billion or 42.2 percent year on year, as import requirements (this year are lower),” he added.
On the other hand, Malacañang spent more on personnel services, chalking up an increase of P8.7 billion, or 3.3 percent, to P273.6 billion because of the implementation of salary increases under the Salary Standardization Law 3.
Further, transfers to local government units increased by P13.2 billion, or 19.3 percent, to P176.1 billion due to higher internal revenue allotments this year.
