Metro Manila (CNN Philippines, September 16) — Several lawmakers raised concern over the underutilized funds of the Department of Public Works and Highways (DPWH) during the House Appropriations Committee’s deliberation on the agency’s 2023 budget on Friday.
Iloilo City Rep. Julienne Baronda questioned why the DPWH’s current budget obligation rate is lower than its average utilization.
DPWH Secretary Manuel Bonoan said for fiscal year 2022, ₱732.1 billion or 90% of the budget had been obligated while only ₱296.6 billion or 37% had been disbursed so far.
“While it’s true the disbursement rate at this point in time seems to be a little low, I am confident that we will be able to maintain the same absorptive capacity of 90% by the end of the year. We have had several payables that we are now requesting the DBM (Department of Budget and Management) for release of cash obligations,” he told lawmakers.
Baronda also questioned why the DPWH’s Quick Response Fund (QRF) in 2021 worth ₱1.4 billion remains unobligated and undisbursed even under the height of the COVID-19 pandemic.
Bonoan explained that, as of August 31, they only have a balance of ₱1.3 billion out of the total ₱5.5 billion. He said they aim to use these funds before the year ends.
Looking into DPWH’s unreleased, unobligated appropriations
House Deputy Minority Leader Bernadette Herrera Dy questioned the DPWH for having billions in unused funds when there are many projects that need funding.
“Meron ho tayong unreleased appropriation na ₱39 billion and unobligated allotment na ₱48 billion nung 2021. At ang pinakamasakit po nag-remit tayo ng overall savings na ₱3.4 billion in 2021,” she told DPWH officials.
[Translation: We have unreleased appropriation worth ₱39 billion and unobligated allotment worth ₱48 billion during 2021. The worst part is that we remitted overall savings of ₱3.4 billion in 2021.]
“Para po sa amin na nagkakandarapa na mapondohan yung priority projects natin. Masakit pong tingnan na nagbalik tayo dahil hindi natin nagamit,” Herrera-Dy added.
[Translation: It’s disappointing that lawmakers fought to provide funds for the government’s priority projects only to see the money returned because we didn’t use it.]
Bonoan clarified that the savings stem from the difference of the budget allocation and the cost that was settled in the bidding process.
“These savings are in standby for augmentation of other projects. These are being used to augment the budgetary deficiency for ongoing projects,” he said.
Bonoan explained that the savings has been used to help fund the maintenance of foreign-assisted projects and other requirements. They have submitted a request under unprogrammed allocation to the Budget department to augment these projects.
On the issue of ₱48 billion unobligated budget, Bonoan said this is for projects identified as “for later release” and are still awaiting the Special Allotment Release Order or SARO. Rep. Herrera-Dy pointed out that unreleased and unobligated funds are different.
The DPWH has proposed a ₱718.36 billion budget for 2023, the second highest in the National Expenditure Program. Plenary debates on the budget are set to begin next week.
