Infra spending target surpassed, but virus delays critical programs
The government exceeded its downscaled infrastructure expenditure goal last year, but the P681 billion spent was still below the 2019 level as the pandemic limited construction progress, according to the country’s chief economist.
Citing preliminary data from the Department of Budget and Management (DBM), Acting Socioeconomic Planning Secretary Karl Kendrick Chua told a press conference on Thursday that actual infrastructure spending last year was about 11-percent higher than the P609-billion program.
During the fourth quarter of 2020 alone, disbursements on infrastructure reached P230 billion, surpassing the P178-billion target, added Chua, who heads the state planning agency National Economic and Development Authority (Neda).
However, DBM data showed the 2020 public infrastructure spending figure cited by Chua was below the P881.7 billion spent in 2019.
Also, fourth-quarter disbursements on infrastructure and other capital outlays last year were lower than 2019’s P341 billion.
Chua also attributed the year-on-year decline to base effects, as the government in late 2019 implemented a catch-up spending program to make up for the delayed approval of that year’s budget.
At the height of the longest and most stringent COVID-19 lockdown in the region, the government also inflicted budget cuts on the two biggest infrastructure agencies—the Department of Public Works and Highways and the Department of Transportation—and realigned money into COVID-19 response.
Chua said P1.1 trillion was set aside from the record P4.5-trillion national budget for 2021 in order to kick-start more infrastructure projects and to prepare the country for a rebound from the pandemic-induced recession.
“With a multiplier of 2.27, meaning every P1 spent creates another P1.27, some 1.7 million jobs can be created to accelerate the recovery. Timely implementation of infrastructure projects will have the biggest impact on our recovery prospects,” Chua said.
