BUDGET SECRETARY AMENAH PANGANDAMAN: UNDERSPENDING WILL BE ADDRESSED THIS 2024

Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman assured investors that the national government will successfully address underspending this 2024. 

At the Philippine Economic Briefing held in Pasay City on May 27, 2024, Pangandaman emphasized during the panel discussion on “Shaping a Macroeconomic Landscape Conducive for Investments” that there will be less risk of underspending in the second quarter due to the immediate release of allotments to government agencies as early as January, which will enable the timely and accelerated implementation of their priority programs and projects included in the FY 2024 National Budget. 

Secretary Pangandaman also reported that, as of the end of April, more than 80 percent of the FY 2024 budget had already been released. 

New Government Procurement Act 

The Budget Chief likewise highlighted the ratification of the Bicameral Report on the New Government Procurement Act (NGPA) as a crucial step to address underspending as it institutionalized the conduct of early procurement activities.

“Agencies can already bid out their projects by the time we issue the National Expenditure Program to Congress. By the time we have our General Appropriations Act, they can already award the same,” the Secretary explained.

The House of Representatives and Senate of the Philippines ratified the Bicameral Report on the NGPA, reconciling the provisions of Senate Bill No. 2593 and House Bill No. 9648 last May 22.

Digital transformation, PFM reforms 

Digitalizing the bureaucracy is another crucial step to address underspending shared by the Budget Chief. 

For FY 2024, the total digitalization budget more than doubled to Php 64.6 billion, higher by 159.1 percent compared with the Php 24.93 billion budget last year.

“We expect those amounts will increase efficiency in terms of government spending,” the Budget Chief further emphasized, citing other Public Financial Management (PFM) reforms to address procurement and implementation bottlenecks, including the Cash Budgeting System (CBS) and the National Government Rightsizing Program (NGRP). 

The CBS shall promote operational efficiency and fiscal