Infrastructure spending up 41.6% to P352.7 billion in first half
Government spending on infrastructure in the first half jumped 41.6 percent to P352.7 billion as well as exceeded the six-month target as disbursements for some projects were front-loaded ahead of schedule.
In a report Wednesday, the Department of Budget and Management (DBM) said expenditures on infrastructure and other capital outlays from January to June rose from P249.1 billion during the first six months of last year.
The actual spending on infrastructure projects as of June exceeded by 4.3 percent the P352.7-billion program for the six-month period.
In a statement, the DBM attributed the jump mostly to the implementation of road infrastructure projects by the Department of Public Works and Highways.
In June alone, disbursements on infrastructure reached P71.9 billion, up 20 percent year-on-year and 23.8 percent month-on-month.
The DBM said the projects implemented last June included the DPWH-led construction, widening, upgrading and preventive maintenance of road networks nationwide; the Department of Education’s repair and rehabilitation of classrooms and school facilities; the Department of Health’s acquisition of hospital and medical equipment; as well as the Department of Transportation’s rail transport projects and purchase of airport security equipment.
During last Tuesday’s House appropriations committee hearing on the proposed 2019 national budget, Budget Secretary Benjamin Diokno explained that there was no “overspending” as the government cannot spend beyond the amount programmed, but the above-program expenditures so far were a result of front-loading on some projects in the pipeline.
For the entire 2018, government had programmed to spend a total of P775.4 billion on infrastructure and other capital outlays.
Last week, the Bureau of the Treasury reported that the national government posted a budget deficit of P193 billion in the first half, narrower than program, as the growth in revenues due to the Tax Reform for Acceleration and Inclusion (TRAIN) law outpaced the increase in spending on public goods and services.
For the January to June period, a P264.3-billion deficit had been programmed but the actual balance was 27-percent lower.
The end-June budget deficit was nonetheless 25-percent bigger than the P154.5 billion posted last year.
The tax and non-tax revenues collected in the first six months totaled P1.411 trillion, up 20 percent from P1.176 trillion a year ago as well as 8 percent higher than the P1.305-trillion target for the period.
The Treasury had attributed the “strong” collections performance of both the Bureau of Internal Revenue and the Bureau of Customs to “improved tax administration and the impact of the TRAIN law” and also to the “proper valuation and tariff classification of goods, as well as a strengthened campaign against illegal trade,” respectively.
Signed by President Rodrigo Duterte last December, the TRAIN law or Republic Act No. 10963 since Jan. 1 this year, has jacked up or imposed new excise taxes on consumption of cigarettes, sugary drinks, oil products and vehicles, among other goods, to compensate for the restructured personal income tax regime that raised the tax-exempt cap to an annual salary of P250,000.
Expenditures as of June, meanwhile, jumped by a fifth to P1.604 trillion from P1.331 trillion a year ago.
Disbursements during the first six months also exceeded by 2 percent the P1.569-trillion program.
For 2018, the budget-deficit program was capped at P523.7 billion or 3 percent of the gross domestic product.
This year, the programmed government spending of P3.369 trillion was expected to surpass the combined tax and non-tax revenues of P2.846 trillion by yearend. /muf
