THE disbursement of state funds slowed as the government tightened scrutiny over congressional insertions, resulting in the release of 96.7 percent of the P6.326-trillion national budget as of September.
Latest data from the Department of Budget and Management (DBM) showed that the budget releases from January to September this year hit P6.120 trillion, which is higher than the P5.832 trillion disbursed during the same period last year.
However, the pace of releasing this year’s budget is slower compared to last year’s, when the government already freed up 100 percent of the P5.832-trillion allotment as of the end of September 2024.
Budget Assistant Secretary Romeo Matthew T. Balanquit explained that the slowdown in this year’s budget release was due to the implementation of a new safeguard over congressional insertions aimed at preventing the misuse of public funds.
Balanquit cited Section 6 of the veto message by President Ferdinand Marcos Jr., which requires the issuance of Special Allotment Release Orders (Saro) for all congressional insertions amounting to P757 billion.
These Saros, he added, will only be released once agencies meet the necessary requirements and secure approvals from the Executive Secretary and the Office of the President.
Despite the lag in disbursements, Balanquit said they expect the negative impact on overall economic growth to be limited as government spending contributes less than 20 percent to the gross domestic product (GDP).
‘Even if public spending slows in the third quarter due to reduced infrastructure disbursements, we expect a rebound in the fourth quarter, allowing us to still reach the full-year [disbursement] target of P6.082 trillion,’ he said.
‘Consequently, we expect to hit our target contribution to GDP growth by year-end. But again, much of the growth outcome depends on the performance of the private sector and how it reacted amid corruption issues,’ Balanquit added.
Based on the DBM data, P3.988 trillion of the 2025 General Appropriations Act has been disbursed, accounting for 94.7 percent of the total P4.221 trillion funding.
Of the amount, P3.545 trillion went to departments, including the Executive branch, Congress, the Judiciary and other constitutional offices.
Another P443.295 billion covered special purpose funds, such as budgetary support to government corporations, allocation to local government units and calamity fund, among others.
Meanwhile, releases for automatic appropriations reached P1.904 trillion or about 90 percent of the P2.115-trillion aggregate funding.
These include the full transfer of the national tax allotment (P1.034 trillion), block grant (P83.421 billion), pension of ex-president/ex-president widows (P480,000), special account in the general fund (P37.352 billion) and tax expenditures fund/customs duties and taxes (P14.5 billion).
About 75 percent or P21.525 billion was disbursed for net lending, while P636.023 billion covered interest payments.
The DBM also allotted an additional P8.393 billion for retirement and life insurance premiums of government employees, bringing the total to P76.943 billion as of end-September.
In terms of other releases, the DBM released a total of P226.777 billion. Of the amount, P20.807 billion in continuing appropriations from the previous year and P62.582 billion in other automatic appropriations were released.
Roughly P143.387 billion worth of unprogrammed appropriations was earmarked as assistance for government infrastructure programs amounting to P25.514 billion, support to foreign-assisted projects (P101.603 billion), budgetary support to state-run firms (P6.269 billion) and for the government counterpart of foreign-assisted projects (P10 billion).
Unprogrammed appropriations are those that provide standby authority to incur additional agency obligations for priority programs or projects when revenue collection exceeds targets, and when additional grants or foreign funds are generated.
The DBM has yet to release the remaining P206.331 billion of this year’s budget allocation.