DBM to review budget execution of agencies, wants all 2024 SAROs released by Q1

The Department of Budget and Management (DBM) is targeting to release all special allotment release orders (SAROs) for 2024 within the first quarter of the year, amid a planned review of the budget execution of government agencies.

At a briefing in Manila, Budget Secretary Amenah Pangandaman said the department is now reviewing the budget execution and has already asked agencies to submit their respective catch-up plans regarding their spending.

“Ang balak po sana namin by next year is that lahat po ng SARO, kung puwede, is ma-release na namin lahat by first quarter and then sa NCA (Notice of Cash Allocation) na lang po kami maghihigpit,” she said.

(What we are planning hopefully by next year is that all the SAROs, if possible, we release all by the first quarter and we will just tighten up on the NCA.)

According to DBM chief of staff Leo Angelo Larcia, the review of the budget execution will be undertaken by a technical working group that will be convened, in a bid to expedite the release of funds.

The review, targeted to be completed within the year, also seeks to ensure that releases are in line with the Philippine Development Plan crafted by the National Economic and Development Authority (NEDA).

This comes as a number of departments have reported a low budget utilization rate (BUR), prompting the DBM to reduce their total allocations under the 2024 National Expenditure Program (NEP).

“Sa Congress, meron silang congressional hearing din, may oversight sila when they look at our budget, and then ‘yung mga mabababa ‘yung BUR nila or absorptive capacity nila, we take that into consideration sa budget,” she said.

(In Congress, they also have congressional hearings, they have oversight when they look at our budget and those with low BUR or absorptive capacity, we take that into consideration in the budget.)

Among those that recorded a lower budget is the Department of Information and Communications Technology (DICT) which has a proposed budget of P9.856 billion versus the P10.879 billion programmed this year.

Citing data from the latest budget hearings, Pangandaman said the DICT only reported a budget utilization rate of 7%.

Another department that had a lower allocation in 2024 is the Department of Agrarian Reform (DAR) with P9.392 billion versus the programmed P11.314 billion in 2023.

Moving forward, Pangandaman said the DBM will again push for early procurement, and it is now working on proposals regarding the procurement process, which was one of the measures called on by President Ferdinand “Bongbong” Marcos Jr. in his second State of the Nation Address (SONA).

“We will present it sa (to the) admin, sa (to the) Presidente in two weeks and then after that, we will release ‘yung mga (the) amendments,” she said. — RSJ, GMA Integrated News