An Analysis of the Budget Utilization for MSME Support Amidst the COVID-19 Pandemic in the Philippines

Date

6-2022

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Dr. Jefferson A. Arapoc

Committee Member

Gideon P. Carnaje, Jefferson A. Arapoc, Agham C. Cuevas

Restrictions

Restricted: Not available to the general public and to those bound by the confidentiality agreement. Access is available only after consultation with author/thesis adviser.

Abstract

The study aimed to analyze the Philippine government's fund allocation and utilization to the MSME sector to aid its recovery and revival during the COVID-19 pandemic. Few studies, especially in the local context, have explored budget utilization and the various factors that affect it, such as agency absorptive capacity. The study primarily used data from DBM's General Appropriations Act or SARO/NCA for COVID-19's Bayanihan laws and the Notice of Cash Allocations. It compared sectoral allocation and utilization and conducted an in-depth analysis of the utilization of the MSME-focused programs under Bayanihan I and Bayanihan II, respectively. The researcher not only computed for utilization rates but also provided the context and identified possible factors that impeded full or proper budget expenditure. The analysis revealed that the limitation affecting government agencies in charge of implementing MSME support programs included the pace of disbursement, agency capacity and program preparation, and the quality of budget planning. Slow fund release and limited absorptive capacity are perennial problems plaguing our public institutions, preventing efficient expenditure and full use of allotment. Overestimated budgets and optimistic financial planning, long existing problems in developing countries, were also observed in the cases discussed in this study.

Language

English

LC Subject

Expenditures, Public--Evaluation, COVID-19 Pandemic, 2020-2023

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2022 E2 M35

Document Type

Thesis

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