MANILA, Philippines–Expect more roads, bridges and other public works to take place toward the end of this year as the government ramps up infrastructure spending ahead of the 2016 elections.
Data from the interagency Development Budget Coordination Committee (DBCC) showed that disbursements intended for infrastructure and other capital outlays were programmed to hit P142.2 billion in the fourth quarter, following a steady rise from the P94.3 billion seen in the first and second quarters, and the P100.8 billion of the third quarter.
The infrastructure disbursement for the fourth quarter of the year would be the highest quarterly figure in at least three years, as 2013-2015 data posted on the DBM website showed.
In the fourth quarter of last year, the government programmed only P86.6 billion for infrastructure spending—just over half of the allocation for the same period of 2015.
Also, the government allotted a total of P431.6 billion for infrastructure and public works this year—up from the 2014 program of P365.2 billion.
The 2015 infrastructure spending program accounts for 16.7 percent of the planned P2.559 trillion in disbursements for this year.
The actual disbursements for infrastructure projects last year only reached P276 billion—24.4 percent below the program. This was why the Department of Budget and Management (DBM) described the sector as having the “widest spending deficit” in 2014.
The DBM attributed last year’s slower infrastructure spending on mainly on the low notice of cash allocation (NCA) utilization rates of the Department of Public Works and Highways (76.9 percent) and the Department of Transportation and Communications (67.6 percent).
The two agencies also had lower obligation rates last year of 69.3 percent (from 90.6 percent in 2013) and 58.2 percent (from 66.9 percent), respectively.
In 2014, anemic government spending, mostly due to the Supreme Court decision that the Disbursement Acceleration Program (DAP) was unconstitutional.
The DAP was supposed to fast-track government disbursements. Because of the high court’s decision, total expenditures only reached P1.982 trillion—13.3-percent lower than the P2.284 trillion programmed for 2014.
This meant that the government did not spend as much as it should to support the investments required in sustaining economic growth.
Slower spending on public goods and services coupled with an 11-percent jump in total revenues narrowed last year’s budget deficit to P73.1 billion—73 percent smaller than the P266.2 billion programmed for 2014.