Government infrastructure spending climbs 50% in June

MANILA, Philippines — Infrastructure spending in June rose by more than half to P94.4 billion as the government sped up the modernization of the military and the upgrade of schools nationwide.

According to the Department of Budget and Management (DBM), the government increased its infrastructure expenditure by 50.4 percent in June compared to the same month in 2020.

“Infrastructure and other capital outlays expanded to P94.4 billion, P31.6 billion or 50.4 percent larger than last year’s P62.8 billion,” the DBM said.

The Department of Public Works and Highways (DPWH) managed to maintain the pace of the infrastructure buildup in June as Metro Manila and surrounding provinces stayed under general community quarantine (GCQ) for the month. As such, the DPWH pushed through with its road works to take advantage of the relaxed quarantine status.

The Department of Transportation also paid the government’s part in connectivity projects that are supported by foreign financiers. According to the DBM, payables were released in financing the rehabilitation of the Metro Rail Transit Line 3 and the construction of the Metro Manila Subway.

The DBM also said infrastructure spending in June grew due to allocations made to the defense agencies that were used to bankroll projects under the Revised Armed Forces of the Philippines Modernization Program.

Further, the DBM granted the Department of Education infrastructure payouts to pursue for the purchase of computers as required under the Bayanihan to Recover as One Act.

Meanwhile, maintenance spending in June jumped by nearly 29 percent to P75.3 billion as authorities had to repatriate overseas Filipino workers located in countries where COVID-19 infection is surging.

Further, maintenance expenditures jumped due to the release of internet allowance to teachers, and payables for the Smart Campuses Program of the Commission on Higher Education. The DBM also said preparations for the 2022 national elections contributed to the increase.

Also, personnel services spending rose by over 16 percent to P110.3 billion as the government issued the second tranche of salary increase for its civilian personnel. The Department of Health also expanded its manpower to improve its COVID-19 measures.