MANILA, Philippines–Government spending grew by 5.1 percent year on year as of end-November last year to P1.762 trillion on the back of higher subsidies to state-run firms, as well as more capital spending and maintenance costs, the Department of Budget and Management (DBM) reported on Tuesday.
Also, Budget Secretary Florencio B. Abad told reporters on Tuesday that public spending likely further picked up starting December until January due to the faster disbursement of funds to rehabilitate areas devastated by Supertyphoon “Yolanda” as well as the earthquake that shook central Visayas in 2013.
Abad also said the budget deficit likely widened in December and was “hopefully” equivalent to about 1 percent of the gross domestic product or GDP.
In a statement, the DBM said the government disbursements in the first 11 months of 2014 exceeded the P1.677 trillion spent from January to November 2013.
“Capital outlay for infrastructure saw a 6.3-percent, or P14-billion, improvement for the 11-month period compared to 2013 levels, from P223.3 billion in 2013 to P237.3 billion last year. This reflected the administration’s continued commitment to build and rehabilitate roads and bridges, as well as complete other infrastructure projects,” the DBM noted.
Spending for public goods and services in November alone, however, dropped 7.7 percent to P151.4 billion, from P164 billion in 2013.
“While the November report showed lower disbursements compared to the previous month’s performance, this can be attributed largely to better management of the government’s lending, our debt, and subsidies to GOCCs [government-owned and -controlled corporations]. This reflects the government’s progress in keeping down costs that don’t involve crucial projects and programs,” Abad said.
“Of the P12.6 billion reduction in spending for the month of November, around 82 percent, or P10.3 billion, can actually be attributed to the decline in non-NCA [notices of cash allocation] items such as interest payments, tax subsidies and net lending,” the DBM said in a report posted on its website, referring to it as a favorable development.