The Department of Budget and Management (DBM) has raised questions about the conventional link between budget utilization rates and effective service delivery. Acting Budget Secretary Kim Robert C. De Leon emphasized that even with a high cash utilization rate, agencies may not necessarily deliver meaningful results.
A Shift in Perspective on Budgeting
I would not want to be gauged on the percentage of the budget being utilized. We’re looking at the quality of spending. You may be spending less but producing more in terms of output and even outcome.
Kim Robert C. De Leon, Acting Budget Secretary
De Leon's comments come as the DBM reported a cash utilization rate of 92.7% for government agencies by the end of August, a slight decline from 93.8% the previous year. He pointed out that while utilization figures are important, they should not be the sole measure of an agency's performance.
- Focus on the quality and impact of public expenditures.
- Evaluate whether programs achieve their intended goals.
- Consider actual benefits delivered to the public.
This perspective encourages agencies to prioritize the outcomes of their spending rather than simply the amount spent. De Leon stated that enhancing the quality and efficiency of expenditures could lead to tangible improvements in public services.