Infrastructure spending eases to P89.6 billion in July

MANILA, Philippines — The government’s infrastructure expenditures remained sluggish in July as lower disbursements by the Department of Public Works and Highways (DPWH) continued to weigh on spending, although the contraction tapered off.

Latest data from the Department of Budget and Management (DBM) showed that infrastructure and other capital outlays slipped by four percent to P89.6 billion in July from P93.3 billion a year ago.

The decline, however, was cushioned by the implementation of various capital outlay projects under the Department of National Defense (DND)’s Revised Armed Forces of the Philippines Modernization Program.

These also included the capital outlay component of the Department of Agriculture (DA)’s Philippine Rural Development Projects and the settlement of accounts payable for various rail transport projects of the Department of Transportation.

“These items moderated the decline in the overall infrastructure expenditures for July amid lower disbursements posted by the DPWH,” the DBM said.

The July decline was less pronounced than in previous months, with infrastructure spending falling by as much as 51.7 percent in April, based on government disbursement data.

Infrastructure and other capital outlays fell by 36 percent to P457 billion in January to July from P713.5 billion in the same period last year.

Infrastructure spending slowed as government tightened processes following the flood-control scandal, which unraveled last year.

Despite the weakness in infrastructure spending, overall government disbursements accelerated in July, rising by 19.8 percent to P588.6 billion from P491.2 billion a year earlier.

The increase was driven by maintenance and other operating expenses, interest payments, personal services expenditures, and combined allotment and capital transfers to local governments.

For July alone, the DBM released P73.7 billion in allotments for various government programs and projects.

Among the major releases was P12.4 billion for the Department of Social Welfare and Development’s protective services for individuals and families in difficult circumstances under the Unified Package for Livelihoods, Industry, Food and Transport.

Overall national government disbursements reached P3.76 trillion in January to July, up seven percent from P3.52 trillion a year ago.

As of July 31, some P611 billion or nine percent of the government’s P6.793-trillion full-year obligation program remained unreleased, according to the DBM.

In August, the DBM released P209.6 billion in allotments for major approved agency requirements covering education, health care, transportation, agriculture, local government support, defense modernization and other obligations.

Among the notable releases was P14.8 billion for the capitalization of Maharlika Investment Corp.