Gov’t boosts infra spending 18% in Oct

Government spending on infrastructure projects went up to P51.5 billion in October this year, data from the Department of Budget and Management (DBM) showed.

Based on the DBM's National Government Disbursement Performance report, infrastructure spending in October rose 17.8 percent from P43.7 billion in the same month in 2016.

The DBM attributed the increase in infrastructure expenditures to the completion of public work projects – such as road repair, upgrading and widening; flood control; and rehabilitation of dike systems – and the acquisition of transport equipment of the Department of Interior and Local Government (DILG) under its Capability Enhancement Program.

The hike was also due to the payment for various communication, navigational and air traffic management system projects, as well as consultancy and civil works for the Light Rail Transit (LRT) Lines 1 and 2 extension projects of the Department of Transportation.

On a year-to-date basis, infrastructure expenditures in the 10 months to October stood at P442.7 billion, 11.8 percent more than the P395.8 billion level last year.

The DBM said infrastructure spending during the 10-month period was boosted by road infrastructure projects, the modernization program of the Armed Forces of the Philippines, as well as other capital outlays of the Department of Education, state universities and colleges, and the Department of Health.

Infrastructure projects form part of the government's capital outlays, which went up 10.4 percent to P60.6 billion in October from P54.9 billion in the same month in 2016.

Other forms of capital outlays include equities – or investments of the national government in the authorized capital stock of state corporations – and capital transfer to local government units.

Investment in equities, for its part, reached P100 million in October, while capital transfer to LGUs declined 19.6 percent to P9 billion.

The Duterte administration vowed to accelerate public spending, particularly in infrastructure to sustain economic growth, encourage investments and create jobs.

According to the DBM, investments in infrastructure projects are expected to remain upbeat in the remaining months of the year.

In particular, the Department of Public Works and Highways is seen to accelerate disbursements to pay for completed road projects. Capital outlays of the Department of National Defense and the DILG are also expected to buoy spending in the last quarter.

Based on data from the Bureau of the Treasury, total expenditures of the national government, including infrastructure, climbed 10 percent to P2.24 trillion as of endOctober from P2.04 trillion in the same period in 2016.