Gov’t accelerates...
public infrastructure and capital outlay already reached 245.65 billion from January to July, which is 22-percent higher than the 202.87 billion spent in the same period last year.
The increase was brought about by the improved spending for Department of Public Works and Highways (DPWH) projects; Armed Forces of the Philippines (AFP) modernization; Autonomous Region in Muslim Mindanao (ARMM) projects; and several projects of the Department of Transportation and Communications (DOTC).
But Abad said the spending could further go up because of the several “interventions” that the government will do in the remaining months of the year.
“It will be different this time. Last year, we saw normal pattern in spending but you have interventions that can further accelerate it. Traditionally, the second semester is better than first semester especially the last quarter of the year,” Abad further said.
“We have interventions to accelerate it further. For example, additional bids and awards committees, permanent back secretariats, additional man power for DPWH, some changes in disbursement policies,” he added.
Abad explained that the different pattern in spending will be brought about the rush towards the election year.
“You also have to remember that the last semester, especially the last quarter is really run up to elections next year. People now realize that it will not be wise to carry over projects because the election ban starts in February,” Abad said.
“That’s going to be driving element in disbursements,” he added.
He also recognized that there’s a need for the government to increase the budget to improve the healthcare industry.
“What needs to be accelerated are the health facilities enhancement program of DOH [Department of Health],” Abad further said.
The Department of Budget and Management (DBM) specified that spending for infrastructure and capital outlay for the month of July alone amounted to 38.3 billion, compared to the 19.9 billion disbursed in the same month last year.
Earlier, the Department of Finance reported that government expenditures grew by 25 percent in July to 210.7 billion, which brought its fiscal position for the month to a deficit of 32.2 billion.
With the hefty financing gap in July, the national government was back in a deficit in the first seven months after its rare first semester fiscal surplus.
At end-July, the national government’s budget deficit stood at 18.5 billion, lower by 67 percent compared with 55.7 billion in the same period in 2014. In the first semester, the government had a surplus of 13.74 billion.
Abad explained a large portion of the remaining balance in this year’s budget includes the 180 billion in Special Purpose Funds, which have yet to be released.
“These funds, such as the National Disaster Risk Reduction and Management Fund, are not released until contingencies arise and the appropriate release requirements are met,” Abad said.
“What’s important to consider is the recent news that disbursements have accelerated significantly, and that public spending was instrumental to our gross domestic product (GDP) growth in the second quarter,” the budget chief added.
According to Abad, this gives government a good measure of confidence in its spending performance for the remaining months of the year.
“We now look to our agencies to sustain the improvements they’ve so far made, and to continue optimizing their budgets to help support the country’s growth,” Abad said.
Earlier, the Department of Finance reported that government expenditures grew by 25 percent in July to 210.7 billion, which brought its fiscal position for the month to a deficit of 32.2 billion.
With the hefty financing gap in July, the national government was back in a deficit in the first seven months after its rare first semester fiscal surplus.
At end-July, the national government’s budget deficit stood at 18.5 billion, lower by 67 percent compared with 55.7 billion in the same period in 2014. In the first semester, the government had a surplus of 13.74 billion.