BW FILE PHOTO

THE Department of Budget and Management (DBM) said it released 87.9% of the budget for 2026 as of the end of June.

According to the DBM Status of Allotment Release report, the releases amounted to P5.97 trillion out of the original budget total of P6.79 trillion, leaving P819.49 billion undistributed.

The release rate at the end of last month was running behind the year-earlier pace of 90%.

Releases to government agencies and departments amounted to P3.34 trillion by the end of June, equivalent to 90.9% of their allocations, compared to 94% in the same period last year.

Special-purpose funds released by the end of the month stood at P477 billion, representing 66.3% of the total allotment.

Meanwhile, automatic appropriation releases were at 89.8%, or P2.15 trillion.

These include the National Tax Allotment of P1.19 trillion, the P712.5 billion in interest payments, the P93.98 billion for the Block Grant, the P82.92 billion for retirement and life insurance premiums, and the P36.47 billion for a special account in the general fund, which includes the P6 billion allotment for the Rice Competitiveness Enhancement program.

“Other” releases amounted to P134.84 billion, which include continuing appropriations from last year worth P22.76 billion, P85.65 billion in unprogrammed appropriations, and other automatic appropriations worth P26.43 billion.

Including the other releases, the budget allotment rate hit 89.9% or P6.11 trillion, leaving P684.64 billion left undistributed. 

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the allotment rate at the end of June still reflects government underspending.

“This is consistent and still reflects government underspending especially on infrastructure amid the anomalous flood control projects and continued cautiousness to prevent incidence of corruption, as a matter of prudence,” he said via Viber.

He said he expects the disbursement rate to pick up in the coming months as the government accelerates spending on infrastructure. — Justine Irish D. Tabile