Government spends P605 B for infra in 2016

MANILA, Philippines - The government spent P605.5 billion on infrastructure in 2016, up from the 2015 spending but still below target due to procurement problems, the Department of Budget and Management (DBM) reported.

Latest data from the DBM showed capital outlays in 2016 were 38.9 percent higher than the P436 billion recorded in 2015.

However, it missed the P655.7 billion target expenditure for infrastructure by 7.7 percent.

The DBM said the underspending was caused by difficulties in the procurement process, such as failure of biddings, non-compliance of bidders with bid requirements and difficulty in complying with product or service specifications.

The agency earlier released the revised implementing rules and regulations of Republic Act 9184 or the Procurement Law to address these issues and fast-track the process to avoid delays in project implementation.

Moreover, some projects under the Department of National Defense (DND) are still ongoing or waiting for the President’s approval, while the Philippine National Railways and Philippine Ports Authority still have some unused funds.

“The said agencies are already expediting procurement activities for these programs or projects to ensure obligation this year,” the DBM said.

The bulk of capital outlays in 2016 went to actual infrastructure projects at P493 billion, 42.3 percent higher from the previous year, but 7.5 percent lower than the revised target of P533.1 billion.

A total of P100.8 billion was transferred to local government units for capital, while P11.7 billion went to equities – the government’s investment in the authorized capital stock of government-owned or controlled corporations.

According to the DBM, expenditures on infrastructure and other capital outlays propelled the government’s total disbursements to P2.549 trillion in 2016.