DOF welcomes House inquiry over ‘underspending’

The Department of Finance (DOF) assured yesterday that it will cooperate with the House of Representatives in the planned inquiry over the “perceived” underspending during the Duterte administration.

In a statement, Finance Secretary Carlos G. Dominguez III said the economic managers welcomed the inquiry to give them an opportunity to explain how the Duterte administration has so far spent public funds during its term in office.

But as early as now, Dominguez said that the “bad old days” when retrogressive practice of underspending had prevailed in the past, “are now over.”

Dominguez cited the improved absorptive capacity of government agencies the massive public spending on infrastructure that from January to September 2018 already amounted to 1571 billion, above by 7.2 percent against target and 46 percent higher than in the same period last year.

He said the 1571 billion for infrastructure in the first nine months is significantly higher by 65.3 percent compared to the amount spent in 2015, which was the last full year of the Aquino administration.

“The old problem of absorptive capacity has been solved. The mantra of fast and sure is being observed,” Dominguez said.

This significant rise in infrastructure spending under President Duterte shows that the Department of Public Works and Highways (DPWH) and the Department of Transportation (DOTr), the two lead agencies in the “Build, Build, Build” program, are moving faster than expected, Dominguez said.

The sum of 1345.3 billion spent by the Aquino government in 2015 is even 20 percent below target, said Dominguez, who likewise noted that “set against the infrastructure investments we are seeing now, the previous administration delivered an anemic performance.”

“I’m very happy to note that Congress is going to call a hearing on what is perceived as underspending, because we would like to inform Congress and the public that the bad old days of underspending, which the critics faulted the government for moving too slowly in getting the projects done, are now over,” said Dominguez.

According to reports, the House plans to hold a "Question Hour" with Budget Secretary Benjamin Diokno in response to a resolution filed by Rep. Danilo Suarez questioning the government’s alleged "underspending."

“Now that we are moving ahead of our spending schedule, we are now being faulted for enlarging the budget deficit when in fact, we said that our budget deficit is going to be 3 percent of GDP. And we have hit it on target this year, the first time ever in recent history,” he added.

The significant increase in infrastructure investments are matched by improved revenue collections, with the total collections of the Bureaus of Customs and of Internal Revenue (BIR) in the first 10 months of the year amounting to 12.099 trillion, up 16 percent from collections in the same period last year, Dominguez said.

He said the tax collections in the first 10 months of 2018, which is just slightly 3 percent short of target, was significantly higher by 1298.66 billion or 16.58 percent compared to the 11.8 trillion collected during the last full year of the Aquino administration in 2015, which was even 15 percent below target.