DepEd Budget Obligation and Disbursement Rates Examined
The Department of Education’s budget utilization rates have drawn significant attention amid ongoing concerns about efficiency. The four-word keyphrase budget utilization rates of emerges early as a focal point in government spending reviews. Since 2020, DepEd has maintained a high obligation rate, averaging 89.2 percent, signaling that funds allocated for projects were largely committed to the agency.
However, a closer look reveals a troubling discrepancy between obligations and actual disbursements. Officials reported that only 11 percent of textbook funds were disbursed in 2023, highlighting a gap between budget commitments and delivery of essential educational materials.
Understanding Obligation and Disbursement Rates
The Congressional Policy and Budget Research Department (CPBRD) clarified that the obligation rate (OR) measures the percentage of allocated funds downloaded to an agency for specific projects. In contrast, the disbursement rate (DR) reflects the proportion of payments made for goods and services already produced or delivered, essentially the actual spending of committed funds.
Annual data indicate ORs for DepEd as 87.7% in 2020, rising to 91.9% in 2022, then slightly declining to 89.8% in 2023 and 86.2% in 2024. Despite these strong obligation figures, disbursement rates for key programs remain alarmingly low.
Low Utilization in Key Programs Raises Alarm
Community members noted that certain programs have experienced poor budget utilization since 2022. The DepEd Computerization Program, for instance, showed obligation rates between 23% and 50%, while feeding programs ranged from 65% to 81%. More concerning is the textbook delivery program, which registered disbursement rates of just 11% in 2023 and 17% in 2024.
“Even more concerning are the PAPs with DRs lower than 50%, such as the delivery of textbooks and other learning materials (11% to 17% in 2023 and 2024), and school-based feeding (48% in 2024),” officials reported. This inefficiency undermines value for money and operational effectiveness, raising questions about DepEd’s capacity to convert funds into tangible educational resources.
Historical Context and Leadership Changes
This is not the first instance where DepEd has been flagged for low budget utilization. During 2024 budget discussions, lawmakers criticized the agency for its failure to deliver laptops as scheduled in 2023, contributing to underutilization of allocated funds. From June 2022 to June 2024, Vice President Sara Duterte concurrently served as Education Secretary, under whose leadership these issues were highlighted.
During a House appropriations committee hearing, a representative questioned DepEd officials on a Commission on Audit report pointing to low utilization, especially for the Computerization Program. Director Ferdinand Pitagan confirmed that only P2.18 billion out of the P11.36 billion budgeted for computers, laptops, and smart TVs had been spent, despite these items being critical for e-learning.
When asked why DepEd requested an additional P11 billion for the program in 2023 without fully utilizing the previous funds, officials explained ongoing efforts to allocate prior-year funds.
Other Agencies Also Show Budget Utilization Issues
The CPBRD report also shed light on budget performance in other government agencies. The Department of Health (DOH) displayed relatively high obligation and disbursement rates for its Medical Assistance to Indigent and Financially Incapacitated Patients (MAIP) program, with ORs of 92.7% in 2023 and 83.9% in 2024, and DRs of 80% and 58%, respectively.
Conversely, the Health Facilities Enhancement Program (HFEP) showed weaker performance, with obligation rates of 81.3% in 2023 and 61.3% in 2024, but disbursement rates lagging at 34.7% and 27.3%. Similarly, programs under the Department of Information and Communications Technology (DICT) reported low disbursement rates.
In 2023, the National Government Data Center had a DR of 6.7%, the National Broadband Plan 9.8%, the National Government Portal 21.2%, and the Free Internet Wi-Fi project 24.2%. Although these rates improved in 2025, none exceeded 50%.
National Budget Deliberations Emphasize Transparency
The House of Representatives has commenced deliberations on the proposed ₱6.793-trillion national budget for 2026. The Development Budget Coordination Committee’s report is under scrutiny as lawmakers seek clarity on budget formulation and fiscal management.
In his opening remarks, the House Speaker stressed the importance of transparency and public trust in government spending. “We ended the practice of the ‘small committee’. We welcomed civil society observers. Because the Filipino people deserve full transparency in how their hard-earned money is planned, allocated, and spent,” he said.
“If we have a clear process, we also have a clear trust from the people. And when the people show trust, the government will be stronger. Transparency is not an option — it is the cornerstone of democratic governance,” the speaker added.
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