Budget utilization up 14% in H1 2024 – DBM

By Darryl John Esguerra, Philippine News Agency

The actual spending, Basilio said, exceeded the Development Budget Coordination Committee projection. (File photo by Judgefloro – Own work, Public Domain)

MANILA – The Department of Budget and Management (DBM) said on Thursday higher budget utilization rate in the first half of 2024 compared to the same period last year.

In a Palace press briefing, DBM Principal Economist, Undersecretary Joselito Basilio said government spending for the first semester of 2024 was 14 percent higher, citing accelerated programs of various government agencies.

The actual spending, Basilio said, exceeded the Development Budget Coordination Committee projection.

Government underspending was identified as among the factors for the slower 2023 second quarter economic growth.

Basilio cited the Road Infrastructure Network Program of the Department of Public Works and Highways as among the key drivers of higher government spending.

“Mas naging mabilis sila this first semester – ang isa sa mga reason ay nagko-conduct sila ng early procurement activities (They have been faster this first semester – one of the reasons is that they are conducting early procurement activities),” he said.

“Meaning, bago pa magsimula iyong January 1, nakapag-bid out na sila ng kanilang mga road infrastructure projects even before the year began, so that pag-release ng budget by January 1 simula na kaagad iyong pagpapa-implement ng proyekto (Meaning, they have already bid out their road infrastructure projects even before the year began, so that when the budget is released by January 1, they can immediately begin the implementation of the project),” he said.

Among the other key factors for the better budget utilization were the Department of National Defense’s bigger spending in the modernization program of the Armed Forces of the Philippines; the improved social services distribution of the Department of Social Welfare and Development; and the spending activities of the Commission on Elections in preparation for the local and national elections for next year.