The Department of Budget and Management (DBM) has signed a Memorandum of Agreement (MOA) with three authorized government servicing banks for the implementation of its online release of Notice of Cash Allocation (NCA) system.
According to the agreement, upon digital release of the NCAs from the DBM, the Land Bank, DBP, and Philippine Veterans’ Bank shall credit the respective Modified Disbursement Scheme (MDS) sub-accounts and make funds available to concerned agencies.
DBM Secretary Amenah F. Pangandaman stressed that the MOA signing is proof of the government’s continued thrust toward achieving bureaucratic efficiency.
“Releasing these documents in digital format may seem like a small step but this is a crucial digitalization initiative as it will not only improve ease of doing business; it will also bring us an estimated cost savings of around P2.8 million per month or around P33 million per year with the reduced costs for security paper, printing, supplies, and transportation expenses for physical claiming of documents by agency representatives,” the official said.
The online release of the NCAs will be carried out through the DBM’s Action Document Releasing System (ADRS). The ADRS is a web-based application that facilitates the release of approved DBM action documents in digital format directly to the authorized users of recipient agencies.
“With the institutionalization of the online release of the NCAs, greater transparency and efficiency are fostered because of the elimination of unnecessary steps and paper wastage in physically signing, routing, and photocopying of Action Documents,” DBM Information and Technology Group Undersecretary Maria Francesca del Rosario said.
The MOA was signed between the DBM and three authorized government servicing banks, namely, Land Bank of the Philippines, Development Bank of the Philippines (DBP), and Philippine Veterans Bank.
“We are committed to playing our role in ensuring a more streamlined and efficient process for releasing NCA to provide immediate, transparent, and efficient public service. Together, we will further help enhance the expenditure performance of national government agencies to implement key programs, activities, and projects in the most immediate time,” LandBank of the Philippines First Vice President Reynaldo Capa said.
For his part, Philippine Veterans Bank Branch Banking Group Head Edwin Amahan expressed, “This is an example of how youthful administrators can do wonders in public governance. Philippine Veterans Bank stands with you in this very noble journey. And we will walk with you, run with you, in whatever way we can.”
“Truly, it is our pride and honor to join hands with the DBM, along with our fellow government financial institutions, as we aim to facilitate a more efficient release of funds to government agencies,” Development Bank of the Philippines Executive Vice President George Inocencio said.
Key representatives of the Bureau of Treasury (BTr) and the Anti-Red Tape Authority (ARTA), have likewise expressed their full support for the initiative.
“I can assure you that the Anti-Red Tape Authority will be in full support ready to lend its hand anytime, based on our mandate, to interconnect government agencies. Because this is the only way we can fast track the implementation of our programs and initiatives,” Anti-Red Tape Chief Information Officer Deputy Director General for Operations Ernesto Perez assured.
Meanwhile, OIC-Deputy Treasurer of the Philippines Eduardo Anthony G. Mariño pointed out, “The issuance of the NCA is the most fundamental aspect of budget execution here in the Philippines. It undertakes almost all public sector disbursements and serves as a primary means by which the national government exercises budgetary control and oversight. As such, this is one, if not, the most critical process to digitalize, if we are eager and serious in ushering digital transformation in the public sector.”
