DBM says P1T released to counter underspending

The Department of Budget and Management (DBM) has so far released more than P1 trillion in allocations to counter the impact of underspending on the economy. Budget Secretary Florencio Abad unveiled the accelerated allocation at a briefing to announce the P26.2-billion budget surplus in April, the largest surplus for the national government in 25 years. For January to April, the total disbursements amounted to only P461.4 billion, down 11.6 percent from the first four months of 2010. In the same period, year-on-year underspending on maintenance and other operating expenditures amounted to P15.9 billion. Non-recurring items last year include election-related activities and assistance to farmers and fisherfolk affected by the dry spell. Abad pointed out that government spending has significantly increased in April, with the notice of cash allocations up by 89 percent from the 82 percent in March. The actual disbursements in April amounted to about P112 billion, down 8 percent from what was recorded a year earlier, he said. In order to meet the economic growth target this year, Abad urged government agencies to speed up their spending plans. "Agencies have a lot of catching up to do. I wish to remind them of President Aquino's directive to accelerate program and project implementation," he said. 'Signs of improvement' “Nonetheless, we now see signs of improvement. Based on the catch-up plans of the agencies, as well as the allotments and cash allocations that we released recently, we expect spending to further pick up in the next few months," he added. Big spenders such as the Department of Public Works and Highways have already reviewed their cost assumptions, with an eye to awarding more than 300 projects worth at least P50 million each by June. Abad said the Department of Social Welfare and Development’s conditional cash transfer program is moving faster than expected, with 1.47 million beneficiaries — representing 63 percent of the 2.34 target this year — already receiving their cash grants. He stressed that the DBM will no longer allow huge lump-sum proposals for 2012, which means that agencies must specify budget allocations to particular programs and projects. He said it usually takes government agencies up to mid-year to submit special budget requests for the release of such funds. As such, Abad said that agencies need to fast-track the submission of special budget requests and supporting papers for lump-sum funds for infrastructure projects. —JMT/VS, GMA News