DBM Press Release
August 15, 2023
Growth targets embedded in the Administration's Medium-Term Fiscal Framework (MTFF) are still achievable with the projected accelerated spending of government agencies and further deceleration of inflation for the second half of 2023.
This was the analysis presented by National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan to the Senate Committee on Finance at the Development Budget Coordination Committee (DBCC) Briefing on the FY 2024 National Expenditure Program (NEP) on August 15, following the Senators’ concern on the government’s lackluster disbursement performance for the first semester which only reached Php 2.41 trillion, lower by 6.6 percent compared to the Php 2.58 trillion program. This is in spite of the efficient release of the National Budget by the Department of Budget and Management (DBM).
The DBM has already released 93% of the 2023 National Budget as of end-July 2023.
DBM Secretary Amenah F. Pangandaman shared that the low disbursement against the program was primarily attributed to the substantial outstanding checks recorded as of end-June 2023; lower-than-programmed interest payments in view of the settlement of premia from the re-issuances of bonds; ongoing implementation of social protection programs, particularly the registration and validation of beneficiaries; procurement-related difficulties; ongoing right-of-way acquisition; and billing concerns from suppliers/creditors, such as late submissions of billing statements and compliance with documentary requirements.
In response to these issues, the Budget Chief cited measures to improve agency budget utilization. These include the early release of allotments; conduct of early procurement activities; simplified Implementing Rules and Regulations for the Government Procurement Reform Law; launch of the Government Purchase Card; digitalization of government disbursements and collection; adoption of the Integrated Financial Management Information System across agencies; and the issuance of DBM Circular Letter on Agency Catch-up Plans. She also underscored the need for legislation to enhance public procurement, which is in line with the priorities of President Ferdinand R. Marcos Jr., as mentioned in his second State of the Nation Address.
NEDA Secretary Balisacan also noted that the underspending of the government, particularly the Government Final Consumption Expenditure which accounts for almost 15 percent of GDP, was one of the major factors of the lower GDP growth for Q2 of this year.
Senate President Pro-Tempore Loren B. Legarda lauded the Economic Managers for crafting the innovative Medium-Term Fiscal Framework (MTFF) which serves as a “guidepost in preparing the budget.”
Meanwhile, Department of Finance Secretary Benjamin E. Diokno updated the Senate Committee on Finance on the revenue
collection performance, as well as legislative measures and reforms to improve collection efficiency, while Bangko Sentral ng Pilipinas Governor Eli M. Remolona Jr. shared developments in the monetary, financial, and external sectors and the near-term macroeconomic assumptions.
The DBCC is composed of the DBM, DOF, NEDA, the Office of the President for presidential oversight, and the BSP as a resource institution.
The briefing by the DBCC before the Senate Committee on Finance on the FY 2024 NEP shall continue on August 16.
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