Budget Secretary Florencio B. Abad said that while government spending increased in April year-on-year by as much as P34.4 billion, interest payment (IP) on government debts slightly declined by 0.2 percent to P116.3 billion, to allow more appropriations that will boost growth.
The Department of Budget and Management (DBM) reported that total national government (NG) disbursements in April 2015 increased by 5.5 percent to P660.6 billion, from P626.1 billion in the same period last year, or an increase of P34.4 billion.
However, the budget chief said there was a slight decline in non-notice of cash allocation (NCA) disbursements as of April this year, with IP as of April staying at P116 billion, the same as in 2014.
“As we continue to reduce our debt burden, the government can provide greater budgetary support to key social and economic services. That means more funds for education, health care and infrastructure development, among others,” Abad said.
He said the majority of agency allotments were released at the start of the year, with 84 percent of the total obligation program released by end-April. The rate of early budget release was higher compared with 2013’s 73 percent and 80 percent in 2014.
The budget chief said the issuance of Administrative Order 46 will help agencies and departments utilize their annual allocations effectively through better project monitoring and evaluation and procurement practices, as well as program execution.
“Although spending for April grew year-on-year, much more needs to be done so that disbursements can move faster. Departments and agencies—particularly those with urgent, big-ticket items—should optimize their allocations so that we can look forward to more efficient spending and the faster delivery of services,” Abad said.
Abad added that disbursements from NCAs grew by 17.3 percent in April, compared to 2014 levels, increasing cumulative NCA disbursements as of April by 11.6 percent.
Agencies with improved disbursements include the Office of the President and the departments of Education, Public Works, Social Welfare and Development, and the Interior and Local Government, as well as the Autonomous Region in Muslim Mindanao.
Productive spending—or expenditures for Maintenance and Other Operating Expenses and Capital Outlays (CO)—went up by 22.1 percent in April, with CO expenditures rising by 40.3 percent.