Gov’t spending plays catch-up in second half

THE DEPARTMENT of Budget and Management (DBM) expects government spending to further pick up in the remaining months of the year, as more agencies aimed to ramp up projects during the second half.

“The acceleration in disbursements in the recent months is a good indication that agencies are gradually meeting up their planned spending commitments. Based on discussions with some agencies during FDU (full-time delivery unit) meetings held starting August, catch-up plans are already in place, pointing to a good sign that disbursements will further improve toward the end of the year,” the DBM said in its latest report on the national government’s disbursement performance.

Administrative Order (AO) No. 46 issued by President Aquino last March called for the creation of FDUs in all government departments and agencies to monitor the implementation of their respective projects and programs. AO 46 aimed to reverse anemic government spending, which had slowed down economic growth in recent quarters.

Latest government data showed expenditures in August increased by 15 percent year-on-year to almost P162 billion, although 11-percent lower than the target spending of P182 billion.

At end-August, disbursements were higher by 11 percent year-on-year to P1.4 trillion, but missed the program of P1.7 trillion for the first eight months.

In July, disbursements jumped by a faster 25 percent year-on-year to P210.7 billion, mainly on infrastructure and other capital outlay rising by 92.9 percent year-on-year to P38.3 billion.

The surge in infrastructure spending last July was attributed by the DBM primarily to the P9.3-billion payment made by the Department of National Defense (DND) and the Philippine Air Force for the acquisition of FA-50 aircraft under the Armed Forces of the Philippines’ (AFP) modernization program.