Infra spending up 41.6% to P352.7B in first half
Government spending on infrastructure in the first half jumped 41.6 percent to P352.7 billion, exceeding the six-month target, as disbursements for some projects were front-loaded ahead of schedule.
In a report yesterday, the Department of Budget and Management (DBM) said expenditures on infrastructure and other capital outlays from January to June rose from P249.1 billion in the first six months of last year.
Actual spending on infrastructure projects as of June exceeded by 4.3 percent the P352.7-billion program for the period.
In a statement, the DBM attributed the jump mainly to the implementation of the Department of Public Works and Highways’ road projects.
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 in June included the following: 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, and the Department of Transportation’s rail transport projects.
On Tuesday’s House appropriations committee hearing on the proposed 2019 national budget, Budget Secretary Benjamin E. Diokno explained that there was no “overspending” as the government could not spend beyond the amount programmed. He said the above-program expenditures thus far were a result of front-loading on some projects in the pipeline.
For 2018, the government had programmed to spend P775.4 billion on infrastructure and other capital outlays.
The Bureau of the Treasury had reported that the government posted a budget deficit of P193 billion in the first half, narrower than program, as the growth in revenue due to the Tax Reform for Acceleration and Inclusion (TRAIN) Act outpaced the increase in spending on public goods and services.
For January to June , 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 nontax revenues collected in the first six months hit 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 the Bureaus of Internal Revenue and of Customs to “improved tax administration and the impact of the TRAIN law.—BEN O. DE VERA
