State infra spending nearly doubled in July
GOVERNMENT spending on infrastructure almost doubled to P38.3 billion in July, as expenditures on public goods and services are seen further rising in the second half, ahead of next year’s elections.
The latest Department of Budget and Management (DBM) data showed that the amount spent on infrastructure and capital outlays increased by 92.9 percent in July from P19.9 billion a year ago.
The DBM attributed the huge jump to “ongoing implementation of road work projects under the Department of Public Works and Highways.”
The increase was also on account of the acquisition of aircraft under the Armed Forces of the Philippines modernization program of the Department of National Defense, as well as the implementation of local infrastructure projects in the Autonomous Region in Muslim Mindanao,” it said.
In all, expenditures in July rose by 25 percent to P210.7 billion, the fastest year-on-year increase so far this year.
Maintenance expenditures mainly for education, healthcare and social protection programs, rose by 70.1 percent to P36.6 billion in July.
“The largest disbursements under maintenance expenditures were made by the Department of Social Welfare and Development to widen the implementation of the conditional cash transfer (CCT) program, as well as to support emergency shelter assistance for calamity victims,” the DBM said.
“Spending by the Department of the Interior and Local Government likewise bolstered maintenance expenditures via locally funded projects, including those for poverty reduction—specifically through the bottom-up budgeting program—as well as for peace-building, reconstruction, and development projects in war-torn areas,” it added.
Expenditures on personnel services in July grew by 8.8 percent year-on-year to P46.5 billion, while allotments for local government units rose by 16.3 percent to P33.2 billion.
“I have a feeling that August is going to be another good month [in terms of government spending], all the way to the end of the year,” Budget Secretary Florencio B. Abad told reporters on the sidelines of last week’s Asia-Pacific Economic Cooperation (Apec) meetings in Cebu.
Abad noted that “traditionally, [public spending in] the second semester is better than the first semester, especially in the fourth quarter of the year.”
The national elections in 2016 would also speed up government expenditures, Abad added.
“The last semester, especially the last quarter, is a run up to elections next year. Government officials realize that it will not be wise to carry over projects because the election ban starts in February. Projects should be obligated and ongoing already,” Abad said.
In a separate statement, the DBM said it had released 89.1 percent or P2.32 trillion of the P2.6-trillion 2015 budget as of the end of August.
Data showed that the share of end-August releases to last year’s total budget was slightly higher at 89.3 percent, but the DBM noted that “the significant increase in this year’s national budget means that P300.6 billion more in allotment releases have been made in the last eight months.” The 2014 national budget was lower at P2.264 trillion.
“A large portion of the balance in this year’s budget includes the P180 billion in special purpose funds, which have yet to be released. These funds, such as the national disaster risk reduction and management fund, are not released until contingencies arise and the appropriate release requirements are met,” Abad said.
As of August, 95.5 percent or P1.27 trillion of the P1.33-trillion program has been released to government agencies.
“By the end of August, we’ve been able to release nearly all agency allotments and the majority of the 2015 budget. Most of the work was done at the very beginning of the year, thanks to the GAA (general appropriations act)-as-release-document regime. Allotments that were tagged for later release were also made available to agencies that had complied with their fund release requirements,” Abad said.
