Government overspends on infrastructure, exceeds 9-month target

MANILA, Philippines — Government spending on infrastructure exceeded its target in the first nine months with the Duterte administration’s massive infrastructure program already in full swing, according to the Department of Budget and Management (DBM).

According to the latest disbursement performance report of the DBM, spending on infrastructure and other capital outlays reached P570.8 billion as of end-September, 7.2 percent higher than the programmed amount of P532.6 billion for the period.

This was likewise nearly 46 percent higher than the P391.2 billion actual infrastructure spending recorded in the same period last year.

 Infrastructure expenditure for September alone rose 21.6 percent to P65.2 billion from P53.6 billion in the same period last year.

“Capital spending remains to be the primary driver of government disbursements with the swifter implementation of infrastructure projects by the Department of Public Works and Highways (DPWH) and other infrastructure agencies,” Budget Secretary Benjamin Diokno said in a statement.

“This is proof that the Build Build Build program is firing on all cylinders,” he said.

   Diokno listed some infrastructure items completed by the government in September, including road infrastructure projects of the DPWH and local infrastructure projects under the Bangsamoro Regional Inclusive Development for Growth and Empowerment Program of the Autonomous Region in Muslim Mindanao.

Government disbursements in the first nine months increased 23.6 percent to P2.49 trillion from the P2.01 trillion recorded in the same period last year.

Diokno said this is also 2.6 percent higher than the P2.427 trillion spending program of the government for the period.

 “We are glad to report the strong momentum of government spending in the first nine months. Underspending, a weakness of the bureaucracy for as long as I can remember, has virtually been eradicated,” Diokno said.

“Reforms like careful budget preparation, timely implementation of line agencies, and the gradual shift to an annual cash-based budget system have made this possible,” he said.

Diokno said the improved rate of government spending indicates faster delivery of social programs in health, education and poverty reduction, as well as the quicker implementation and completion of infrastructure projects, like roads, bridges and public transport systems.   

Aside from infrastructure, the budget chief said disbursements was also driven by expenditures on personnel services, which exceeded the target by 3.1 percent at P684.4 billion as of end-September.

Spending on personnel services also increased by 22.4 percent year-on-year due to the higher pay for civilian government employees and military and uniformed personnel.