DOF maintains...
tion “ramped-up” investments in infrastructure, social protection as well as increased disbursements in personal services (PS).
According to the treasury, PS jumped last year following the implementation of salary increases for civilian and military, including uniformed personnel.
The treasury also added that the government hired additional teachers for the Department of Education last year, which also boosted the government’s PSA expenses.
Budget Secretary Benjamin E. Diokno also shrugged off the accelerated spending, noting the government recorded an “impressive” infrastructure disbursements last year, which is now seen to be twice the fiscal deficit-to-GDP ritio.
According to Diokno, the budget deficit has averaged 2.7 percent of GDP in the first two years of the Duterte administration, but its infrastructure outlays are projected to hit 6.3 percent.
“This means that the country’s borrowings are financing worthwhile infrastructure investments that the Filipino people can look forward to enjoying,” Diokno said. “The fiscal numbers reflect our seriousness in closing the country’s infrastructure gap.”
“Filipinos may really look forward to better roads, comfortable mass transport systems like trains and modern public utility vehicles (PUV), among other infrastructure initiatives. The data support
the eye test, with so many construction projects going on around the country,” he added.
Based on historical data provided by the Department of Budget and Management (DBM), Diokno noted that infrastructure spending as percent of GDP was not a priority of previous administrations.
The DBM cited that the ratio hit 3.0 percent under the Aquino administration, 1.6 percent during the Arroyo government, 1.8 percent under former President Joseph Estrada’s term, and 1.7 percent under President Fidel Ramos’ leadership.
The Duterte administration has turned the ratio around by investing an estimated 6.3 percent of GDP for public infrastructure in 2017 and 2018, the budget chief said.