INFRASTRUCTURE SPENDING HIT P568. 8B IN 2017

The amount spent by the government to build infrastructure in 2017 reached P568.8 billion, exceeding the program as more projects were rolled out toward the end of the year, the latest Department of Budget and Management data released yesterday showed.

In a press conference, Budget Secretary Benjamin E. Diokno said the shift to an annual cash-based budget in 2019 from the multiyear obligations-based system at present would further reduce cases of underspending, which had been on a decline in the past two years.

Last year’s disbursements on infrastructure and other capital outlays surpassed by 3.5 percent the programmed P549.4 billion, DBM data showed. Diokno said they were able to exceed the program as there were many projects left behind by the previous administration that they continued to implement.

Diokno said they “did not go beyond” the budget as the government underspent on other aspects such as personnel services, maintenance and other operating expenses, allotment to local government units, interest payments, tax expenditures and capital transfers to LGUs.

Infrastructure spending in 2016 was P493 billion.

In a report, the DBM attributed the higher disbursements on infrastructure and other capital outlays in 2017 to “the implementation of road infrastructure projects [of the Department of Public Works and Highways], projects under the Armed Forces of the Philippines Modernization Program [of the Department of National Defense], Capability Enhancement Program [of the Department of the Interior and Local Government-Philippine National Police], and other capital outlay projects such as repair and rehabilitation of school facilities [of the Department of Education/state universities and colleges].”

In December, alone, the amount spent on infrastructure rose 23 percent year-on-year and jumped 87.8 percent month-on-month to P82.3 billion, DBM data showed.

“This covers road projects such as construction, improvements of roads and replacement of bridges in Luzon, Central Visayas and Mindanao; flood control projects and rehabilitation of dike and river basins in Pangasinan, Central Luzon (Pampanga and Nueva Ecija), and National Capital Region ( Marikina, Valenzuela and Quezon City), and projects under the AFP Modernization Program, such as acquisition of munitions and purchase of engineering and information and communications technology equipment,” the DBM said.

Diokno said the share of infrastructure spending to gross domestic product last year was about 5.6 percent, higher than the target of 5.4 percent.

He expressed optimism that this year’s 6.1-percent infrastructure spending-to-GDP goal was attainable.