Public infrastructure spending more than doubled to P78.9 billion in May as projects went full steam ahead after they stopped last year at the height of the most stringent COVID-19 lockdown in the region.
The Department of Budget and Management (DBM) data showed that expenditures on infrastructure and other capital outlays in May jumped 102.5 percent from P38.9 billion a year ago.
Disbursements during the month also rose 35.6 percent from P58.2 billion in April.
The DBM attributed the year-on-year jump in infrastructure spending to “ongoing implementation of infrastructure projects of the Department of Public Works and Highways (DPWH) nationwide such as construction, repair and rehabilitation of access, by-pass, and diversion roads, bridges, and flood mitigation structures and drainage systems.”
“Payables in connection with the construction of the new Senate building project contributed to the growth of infrastructure and other capital outlays,” the DBM added, referring to the soon-to-rise P8.9-billion facility in Bonifacio Global City (BGC).
The DBM also pointed to base effects. “In contrast to May last year, construction activities were barely conducted amid the extended implementation of the enhanced community quarantine for most part of Luzon and key areas in the Visayas regions,” it noted.
From January to May, the amount spent on infrastructure and other capital outlays climbed 41.3 percent to P332.3 billion from P235.2 billion in the first five months of last year.
Including other expenditures such as infrastructure components of subsidy and equity to state-run corporations as well as transfers to local government units (LGUs), the total end-May disbursements grew 40.3 percent to P421.5 billion from P300.5 billion a year ago.
“The strong spending performance for the current quarter, which is driven by infrastructure and other capital outlays and Bayanihan 2 [Bayanihan to Recover as One Law] expenditures, bodes well for the country’s growth prospects,” the DBM said.
The government had programmed to spend P1.02 trillion, equivalent to 5.1 percent of gross domestic product (GDP), on infrastructure development this year.