Government infrastructure spending rises 26% in 2 months

MANILA, Philippines — The national government managed to post a double-digit growth in its infrastructure disbursements in the first two months despite the delay in the approval of the 2019 budget, the Department of Budget and Management (DBM) reported yesterday.

According to the latest disbursement report of the DBM, actual infrastructure and other capital outlays from January to February rose by 26.3 percent to P118.4 billion from P93.8 billion in the same period last year.

The DBM attributed the increase mainly to the payment of account payables carried over from prior years for completed infrastructure projects of the Department of Public Works and Highways (DPWH).

Including equity and capital transfers to local government units, the DBM said the government’s total capital outlays as of end-February climbed by nine percent to P139 billion from P127.4 billion in the same period in 2018.

According to the DBM, infrastructure and capital outlays continued to be one of the major drivers of government expenditures, which grew by nearly seven percent to P490.7 billion in the first two months from P458.9 billion in the same period last year despite the delay in the 2019 budget.

Pending the approval of the 2019 General Appropriations Act (GAA), the national government has been operating on a reenacted budget in the first few months of 2019.

But the DBM said this setback is expected to end soon, with the Senate already transmitting the enrolled copy of the 2019 General Appropriations Bill to the Office of the President last March 26. The bill is expected to be signed by the President this month.

With this, the DBM said agencies would already be able to proceed with the award of contracts and start implementing new projects upon the effectivity of the 2019 GAA, and undertake catch-up measures to meet their respective targets for the year.

“This will hopefully minimize the impact of the delays in the approval of the 2019 budget,” the DBM said.

To further minimize delays, the government has already undertaken steps to facilitate the implementation and continuity of programs and projects.

For one, economic managers have asked the Commission on Elections to grant exemption on priority infrastructure projects from the election ban. These include 603 programs and projects of the DPWH, and another 145 from various agencies.

The DBM has also come up with the guidelines for fund releases under the reenacted budget through the issuance of DBM Circular Letters 2019-1 and 2019-7.

Lastly, the Government Procurement Policy Board – Technical Support Office (GPPB-TSO) issued Circular 09-2018, laying out the guidelines on the award of contracts for projects included in Early Procurement Activities, to ensure smooth and continuous implementation pf projects, and to avoid the need for rebidding pending the enactment of the 2019 GAA.