Infra spending shrank 22% in Jan-Nov 2020

Implementation delays and the cancelation of some projects amid the COVID-19 pandemic slashed the national government’s infrastructure spending by more than a fifth to P548.8 billion during the 11 months to November of 2020.

The latest Department of Budget and Management (DBM) data released on Tuesday showed disbursements for infrastructure and other capital outlays fell 22 percent from P703.8 billion in January-to-November 2019.During the month of November alone, expenditures on infrastructure slid 50.2 percent to P40.3 billion from P80.9 billion a year ago.

Infrastructure spending in November was also 29.4-percent lower than October’s P57.1 billion.

In a report, the DBM blamed the drop in public infrastructure expenditures that month to “the various delays caused by the imposition of community quarantine measures to contain the further spread of the COVID-19 virus in early 2020 as well as the one-time expense in 2019 for the building constructions of the Land Transportation Office and the Land Transportation Franchising and Regulatory Board.”

For the 11-month period, the decline in spending was also attributed by the DBM to “the discontinuance or deferment of some capital outlay projects, which can no longer be implemented nor completed because of the pandemic pursuant to the Bayanihan 1 Law.”

To recall, the Bayanihan to Heal as One Act that took effect from March to June last year realigned items in the P4.1-trillion 2020 national budget—including some of those supposed to be spent on infrastructure—into direct health, medical and socioeconomic response to COVID-19.

Major infrastructure implementing agencies such as the Departments of Public Works and Highways (DPWH) and of Transportation (DOTr) were among those that suffered the biggest budget cuts.

As of end-November last year, the DPWH’s 2020 budget was reduced to P454.9 billion from P580.9 billion originally, while the DOTr’s appropriations were cut to P82.9 billion from P99.4 billion.

Meanwhile, the DBM said in a statement that it already released P25.99 billion to cover military and uniformed personnel’s regular pension requirements for the first quarter of 2021.“Particularly, the allotments and cash allocations were released to the Department of National Defense-Armed Forces of the Philippines (P14.04 billion), Department of the Interior and Local Government (DILG)-Philippine National Police (P10.64 billion), DILG-Bureau of Fire Protection (P941.78 million) and DILG-Bureau of Jail Management and Penology (P367.16 million). Said releases were charged against the pension and gratuity fund under the fiscal year 2021 general appropriations act,” the DBM said.

“The release order for uniformed personnel of the Philippine Coast Guard and the National Mapping and Resource Information Authority shall be issued upon its submission of the required special budget request to the DBM,” it added. INQ