Government to release P278.4 B in unspent funds this year

MANILA, Philippines - The government plans to release P278.4 billion in unspent portion of the national budget in the second half of the year, the Department of Budget and Management (DBM) said.

Budget Secretary Florencio Abad said the unused funds, carried over from 2014 and the previous years, are expected to be utilized for the remaining months of 2015.

The release of the funds is expected to provide additional boost to public spending, Abad said.

The bulk, or about P102 billion, of the amount will go to the Department of Public Works and Highways for the construction of new roads.

Another P20 billion will be given to the Department of Education for the establishment of new classrooms, while the Department of Agriculture will get P13 billion for construction and repair of irrigation facilities and new farm-to-market roads.

Abad said allocation for the Department of Interior and Local Government stood at P16 billion for government employees’ pension, while the Department of Transportation and Communications would get P20.7 billion.

The release of these carryover funds will be on top of the P2.56-trillion budget for this year.

Latest data from the Department of Finance showed public spending amounted to only P835.7 billion in the first five months of the year, short of the government’s P1.06-trillion target for the period.

Revenues as of May amounted to P922.2 billion, resulting in a budget surplus of P86.4 billion for the five-month period.

The government hopes to attain a budget shortfall of P283.7 billion by year-end, or about two percent of the country’s gross domestic product.