Infra spending surges 42% in 5 months

Public spending on infrastructure rose by more than 25 percent to P58.1 billion in May from the P46.2 billion recorded in the same period last year, the Department of Budget and Management (DBM) said yesterday.

This brought cumulative infrastructure expenditures to P280.8 billion in the first five months, 42.4 percent higher than last year’s level of P197.2 billion.

Budget Secretary Benjamin Diokno said the increase in infrastructure spending was largely due to the completion of road projects by the Department of Public Works and Highways.

“The DPWH competed various infrastructure projects, such as road concreting, widening and improvement, construction of bypass or diversion roads and flood control structures, and the reconstruction, rehabilitation and repair of roads and bridges,” the DBM said.

The agency also cited the repair and rehabilitation of school buildings of the Department of Education, and the acquisition of medical equipment and facilities under the Health Facilities Enhancement Program of the Department of Health.

According to Diokno, infrastructure and other capital outlays were some of the key drivers of the growth in public disbursement during the month.

Government expenditures reached P291.9 billion in May, up 12 percent from the P261.7 billion posted in the same month in 2017.

From January to May, disbursements grew by 25 percent to P1.33 trillion from P1.06 trillion in the same period last year. This was one percent or P15.2 billion higher than the spending program of P1.31 billion for the review period.

“We continue to make strides in the fiscal sector of the economy, and this is confirmed by the spending data. This should translate to better outcomes in the real economy—that is more jobs for our people, improved standards of living, and robust economic activity,” the budget chief said.

Going forward, Diokno expressed confidence the government would hit its second quarter disbursement target.

The DBM said the 2018 quarterly fiscal program as approved by the Development Budget Coordination Committee sets disbursements in the second quarter at P813 billion. For April and May, spending has already reached P553 billion.

Meanwhile, the DBM also announced yesterday that it is processing the proposals of 100 cities which applied for funding assistance under the Green Green Green program.

Funded through the Local Government Support Fund- Assistance to Cities, the Green Green Green initiative is the government’s public open space development program.