Infra spending rises in July – DBM

Government infrastructure spending accelerated in July this year boosted by the Duterte administration’s “Build, Build, Build” program, the Department of Budget and Management (DBM) said yesterday.

In a briefing, Budget Secretary Benjamin E. Diokno said that infrastructure spending and other capital outlays reached 184.5 billion in July, higher by 74.6 percent compared with 148.4 billion in the same month last year.

Diokno said the implementation of projects by the Department of Public Works and Highways (DPWH) continued to pace infrastructure disbursements during the month.

The budget chief said these DPWH projects include the nationwide road construction, improvement and widening projects, the Pasig Marikina river channel improvement project as well as flood control, drainage and dike improvement and rehabilitation projects.

Likewise, Diokno said that capital acquisition for the Armed Forces of the Philippines (AFP) modernization program and procurement of machinery, aircraft and its equipment for the Philippines Coast Guard also boosted infrastructure spending in July.

In the first seven months of the year, the government’s total infrastructure disbursements amounted to 1437.2 billion, an increase of 47 percent from 1297.5 billion in the same period last year.

According to Diokno, the strong infrastructure spending drove the national government’s total expenditures in July to 1328.1 billion, higher by 34 percent from 1245.1 billion in the previous year.

Aside from infrastructure spending, Diokno further said that subsidies to government corporations also boost public spending during the month.

“The fiscal numbers in July 2018 confirm program in our efforts to reduce underspending and install public financial reforms,” Diokno said.

“Government spending is intact, and this means that our people will enjoy the benefits of government projects sooner, such as school buildings and hospitals for the poor and road and mass transit projects for commuters,” he added.

Earlier, Diokno said that the Duterte administration’s priorities in 2019 remain public infrastructure and human capital development, cornering 11.215 trillion.

The government’s proposed spending for public infrastructure and human capital development is about 33.3 percent of the administration’s proposed 13.757-trillion appropriation in 2019.

“Higher investments on infrastructure will support economic growth, targeted to reach seven percent to eight percent in 2019,” the budget department said, noting it will create jobs, and spur opportunities in the countryside.

“Spending for human capital, such as education, healthcare, and social protection, will mold the country’s young population into a world-class and competent workforce capable of sustaining the Philippines’ growth momentum,” the department added.