Gov’t to spend P771 B in Q4, lower than Q3 disbursements

MANILA, Philippines — The government plans to spend P771.1 billion in the last quarter of this year, according to data from the Department of Budget and Management (DBM).

Based on the 2017 National Quarterly Fiscal Program approved by the Development Budget Coordination Committee (DBCC) in June this year, the government is programmed to spend P771.1 billion in the last three months of the year, three percent down from the P801.1 billion programmed in the third quarter.

This also corresponds to 26.5 percent of the revised spending program of the government for full year 2017 at P2.91 trillion.

When asked about the decline, Budget Secretary Benjamin Diokno said disbursements in the third quarter are usually higher than the fourth, based on spending trends from previous years.

“That’s based on past experiences. Disbursements are usually the highest in Q3, the lowest in Q1,” Diokno said in a text message.

Meanwhile, the DBM said in an  earlier statement that spending for the last three months of 2017 is expected to be upbeat, driven by infrastructure and capital outlays, personnel services, and maintenance expenses.

Specifically, payments for completed road projects of the Department of Public Works and Highways, and capital outlays of the Department of National Defense and the Department of Interior and Local Government are scheduled during the period.

The release of year-end bonus and cash gifts of state workers is also set to start in November 16.

Maintenance expenditures are also expected to be high due to the operating expenses of public schools nationwide, and the social protection services of the Department of Social Welfare and Development. 

The Duterte administration vowed to accelerate public spending, particularly in infrastructure to sustain economic growth, encourage investments and create jobs.

As of end-September, government expenditures reached P2.01 trillion, eight percent up from P1.86 trillion the same period last year. This was, however, slightly below the P2.14 trillion year-to-date spending program of the government.

Meanwhile, the DBCC also approved a revenue program of P634.2 billion in the last quarter of 2017. For the whole year, the government’s revenue target is P2.43 trillion.

As of September, the government already generated P1.80 trillion in revenues, up nine percent from P1.65 trillion a year ago.

The respective revenue and spending programs would result to a fiscal deficit amounting to P482.1 billion this 2017, in line with the government’s deficit ceiling of three percent of the gross domestic product.