TE low budget utilization rate of the Department of Migrant Workers (DMW) could be attributed to birth pains that the department is experiencing since it just became operational late last year, according to a policy report.
An Agency Budget Notes report prepared by the Congressional Policy and Budget Research Department (CPBRD) outlined the challenges faced by the DMW in utilizing its allotted fund.
The report noted that the DMW has been identified as the agency with the second-lowest budget utilization rate in the first quarter.
Likewise, an earlier report disclosed by the Department of Budget and Management (DBM) noted that DMW’s obligation rate remained the same even at the end of the second quarter. (Related story: https://businessmirror.com.ph/2023/08/17/dict-dmw-flagged-by-dbm-for-low-budget-optimization/)
In the first quarter, the DMW’s obligation rate stood at 10 percent while in the second quarter it only inched up to a measly 14.3 percent.
“While such dismal performance is unfavorable, it should be noted that the DMW has just commenced its operations in 2022,” the CPBRD report said, emphasizing that the department’s implementing rules and regulations were only signed in November last year.
The CPBRD report explained that the department faced numerous transition activities such as transfer of functions, assets, funds, equipment, properties, transactions and even personnel.
“Issues on the institutional set-up, including manpower, as well as the interim or incomplete policies and procedures to implement its programs and strategies are part of the birth pains of a newly created agency that hampers a more effective utilization of the budget,” the report added.
The report outlined that one of the challenges that the DMW may face next year is its unfilled positions, which it noted is also attributable to the agency’s recent establishment.
“In 2024, it is expected that 1,279 vacant positions in the [Office of the Secretary] [OSEC] out of 1,785 authorized positions would remain unfilled. While roughly 71.7 percent of vacant positions in the OSEC alone may be attributable to the agency’s recent establishment, this nonetheless would adversely impact the DMW’s operations and the effective fulfillment of its mandate,” the report read.
The report also pointed out that the DMW still proposed to create an additional 46 positions amid the unfulfilled positions. The proposed new positions are as follows: 1 Director IV, 7 Chief Labor and Employment Officer, 6 Administrative positions and 32 Technical positions.
“Effective operations of an agency, especially for a newly created one such as the DMW, greatly relies on the available manpower. Based on its Staffing Summary report, more than half of the authorized positions [60.9 percent] remain unfilled in 2023,” it said.
The DMW’s proposed budget next year is at P15.541 billion, slightly lower than this year’s P16.125-billion allocation.
The department’s proposed 2024 budget is broken down as follows: P10.787 billion for the Social Protection and Welfare for OFWs program, P2.778 billion for Overseas Employment and Welfare Program, and P132.5 million for Overseas Employment Regulatory Program.
Another P75.4 million is allocated for the DMW’s Maritime Research and Skills Competency program while P58.6 million is allotted for the department’s Labor Migration Policy and International Cooperation program.
Congress think tank explains DMW’s low budget use rate
Source: News Paper Radio
0 Comments