BUDGET Secretary Florencio B. Abad said structural weakness, such as ill-prepared projects proposed by government agencies, caused the underspending of up to P303-billion budget allocation in 2014.
He told Congress on Monday that of the P2.284.3-trillion programmed spending for 2014, only P1.981.6 trillion have actually been disbursed, creating a situation of massive underspending, particularly for the administration’s infrastructure projects.
At the Joint Congressional Oversight Committee on Public Expenditures, Abad said the single biggest underspent allocation in 2014 was on infrastructure and capital outlays pegged at P106.9 billion. The remaining underspent allocation at P184.9 billion was on current operating expenditures that include personnel services and allotment to local government units.
The budget chief said the lingering structural weakness that affect disbursement include project implementation difficulties, poorly prepared projects or national agencies and departments, as well as procurement difficulties.
Abad added that peculiar problems of small government agencies have also affected disbursement in 2014.
Meanwhile, savings generated from lower interest payments and net lending have also contributed to the underspending of P303 billion, also in 2014.
Likewise, the government’s refocusing on efforts to Supertyphoon Yolanda rehabilitation, as well as unutilized funds from the Disbursements Acceleration Program and Priority Development Assistance Fund, have also compounded the underspending.
The Department of Budget and Management (DBM) has instituted measures to address the underspending, Abad said, which include submission of implementation plan for the programs and projects to the DBM in 2015.
He said the DBM has also designated full emergency delivery units in line agencies, as well as assignment of a full-time officer to monitor programs and project implementation.