Government spending in the first eight months of 2017 jumped 9.8 percent year-on-year to reach P1.78 trillion, and is expected to remain revved up over the remaining months of the year, according to the Department of Budget and Management.
In a statement, Budget Secretary Benjamin E. Diokno said disbursement growth in January to August was driven by the expansion of capital outlays as well as of current operating expenditures.
Diokno said these components showed respective year-on-year growth rates of 11.5 percent and 9.6 percent.
“Disbursements will continue to be buoyed by higher spending requirements of line agencies in the succeeding months given the acceleration of program or project implementation as we approach the year end, especially so, with the one-year validity of the 2017 appropriations,” the budget chief said.
“We are optimistic that we will approach our full year target of P2.909 trillion and will continue to exert our best efforts to reach our goals,” he added. “This administration is committed to address the persistent underspending issues, which have led to the slow delivery of public services in the past.”
In August alone, state spending jumped 13.9 percent, year-on-year, reaching a total of P201.6 billion from P177 billion previously.
For that month, capital outlays surged 22.6 percent to P51.6 billion while current operating expenditures went up by 10.3 percent to P149.9 billion.
Also, Diokno said spending in August got a significant boost from infrastructure and other capital expenditures, which expanded by 18.1 percent to P40.1 billion.
This was driven mainly by expenses on the infrastructure projects of the Department of Public Works and Highways, and capital outlay projects of the Department of Education and the Department of Health.
Further, maintenance expenditures also jumped by 18.4 percent due to the operating requirements of DepEd schools and DOH hospitals nationwide, as well as the implementation of social protection programs by the Department of Social Work and Development.
Personnel services likewise increased, by 8.7 percent, due to the higher base pay of civilian government employees and the increase in allowances of military and uniformed personnel.