Infrastructure spending surges to P68.4 billion in August 2018

MANILA, Philippines — Government spending on infrastructure surged by nearly 71 percent to P68.4 billion in August from P40.1 billion in the same month last year due to the completion of road and flood control projects, and the modernization of the military, the Department of Budget and Management (DBM) reported yesterday.

“The increase was mostly due to the various projects implemented by the Department of Public Works and Highways, which include road widening, repair and construction; flood control, and drainage improvement projects, among others,” the DBM said.

“The modernization program of the Armed Forces of the Philippines also contributed to the surge in spending with the procurement of military communication equipment,” it said.

Year-to-date, the national government’s infrastructure expenditures reached P505.6 billion as of end-August, 49.8 percent higher compared to the P337.6 billion registered in the same period in 2017.

The continued growth in infrastructure and capital outlays contributed to the improvement in government disbursements last August, the DBM said.

During that month, government spending increased by 29 percent to P259.5 billion from the P201.6 billion recorded in the same month last year.

Aside from infrastructure, the DBM said expenditures for personnel services in August, which increased by 32.3 percent to P72.8 billion, has also driven spending growth.

The DBM attributed the increase in disbursement for personnel services to the creation and filling of positions at the Department of Education (DepEd); higher pay for civilian, military and uniformed personnel; and the retirement and terminal leave benefits of various agencies.

Maintenance and other operating expenditures also grew year-on-year by 11.9 percent to P33.1 billion in August from a year ago as a result of the operating requirements of the

DepEd for its K-12 Program and net lending to the National Food Authority in support of its Rice Importation Program.

In terms of allotment releases, the DBM said only 7.1 percent or P269.1 billion of the 3.767 trillion obligation program for 2018 has yet to be released to agencies as of end-August.

The amount is largely composed of P124.3 billion in agency-specific budget—which include requirements for the Educational Facilities Fund of the DPWH—and P140.4 billion in Special Purpose Funds (SPF).

“The allotment releases for these remaining balances are being closely evaluated by the budget department to maximize the use of available funds and to ensure whether these can still be obligated and delivered within the year” Budget Secretary Benjamin Diokno said.    

“We owe it to the Filipino people that implementing agencies immediately utilize the public funds that have been released to ensure the effective delivery of public services within the fiscal year. This is in accordance with annual cash-based budgeting that Congress should pass into law for future administrations to adhere to,” he said.