THE cash utilization rate of state agencies slipped in the first half of 2026 despite higher allocations released by the Department of Budget and Management (DBM).
Government agencies posted a 96.9-percent cash utilization rate as of end-June, lower than the 99-percent utilization rate recorded in the same period last year.
This came after the DBM released a total of P2.489 trillion in notices of cash allocation (NCA) in the first six months of 2026, of which P2.645 trillion was utilized by line departments, state-run corporations and local government units (LGUs).
NCAs released in the first half were higher by 10.04 percent than the P2.489 trillion disbursed a year ago.
In the same period last year, P2.463 trillion worth of NCAs were spent out of the P2.489 trillion in NCAs released.
NCAs are disbursement authorities issued by the DBM to cover the cash requirements of the operations, programs and projects of government agencies.
A higher NCA utilization rate reflects the capacity of state agencies to timely disburse their allocated funds and implement their programs and projects.
Line departments received the bulk of the releases, utilizing P1.751 trillion of the P1.835 trillion allocated to them, equivalent to a 95.4-percent utilization rate.
Several agencies have posted a 100 percent utilization rate, including the Office of the Vice President, Department of Education, Department of Foreign Affairs, Department of Labor and Employment, Department of Migrant Workers, Department of Social Welfare and Development and Department of Tourism.
The Judiciary, the Civil Service Commission, the Commission on Audit, the Commission on Elections and the Office of the Ombudsman, likewise, recorded 100-percent utilization rates.
The Department of Information and Communications Technology, however, registered the lowest utilization rate among line departments at 76 percent, having used P3.482 billion of the P4.606 billion allocated to it.
Meanwhile, NCAs released as budgetary support to government-owned and -controlled corporations reached P183.486 billion, of which P183.453 billion was used, translating to a 100 percent utilization rate.
LGUs similarly utilized nearly all of their allocations. Of the P719.762 billion released, P719.681 billon was spent, also equivalent to a 100 percent utilization rate.
Allocations to LGUs include the national tax allotment, special shares for LGUs, Metropolitan Manila Development Authority, Bangsamoro Autonomous Region in Muslim Mindanao and other transfers to LGUs.
The DBM earlier said that it expects the utilization rate to accelerate in the coming months, as completion of projects, activities and other programs is forthcoming.