Metro Manila (CNN Philippines, October 31) — The government spent more on infrastructure and capital outlays in September to mark the fastest growth this year, signaling a recovery in releases after the delayed budget approval.
Infrastructure spending reached ₱100.3 billion, 53.9 percent higher than the amount released in September 2019, the Department of Budget and Management said Thursday.
The figure is also higher than the ₱59.3 billion released for capital outlays in August.
n a statement, the DBM said the September spending spike was the fastest so far this year, which is due to the full and partial completion of roads, bridges, and flood control structures under under the Department of Public Works and Highways. It also came as the construction of the new Supreme Court building of the Judiciary is underway. Funds have also been disbursed to buy new military equipment under the Revised Armed Forces of the Philippines Modernization Program.
For DBM, the spending bump showed that the government “has broken through the effects of the delayed passage of the 2019 national budget and the election ban on infrastructure spending,” which bogged down economic growth in the first half.
Growth averaged at 5.5 percent during the period, well below the 6-7 percent goal set by the Duterte administration for 2019. Analysts have said that they expect a significantly faster third-quarter performance now that government spending is well on its way up.
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Infrastructure spending was the biggest component in the total spending for the month at ₱415.1 billion, up 39 percent year-on-year. Personnel services — or the salaries and benefits paid to state workers — followed at ₱92.6 billion, a 15 percent rise from September 2018.
However, the September infrastructure spending boost was not enough to bring the nine-month tally close to target. Total releases for infrastructure stood at ₱546.3 billion, up 4.3 percent from last year. This fell short of the ₱594.5 billion which the government wanted to spend on construction plans and other capital outlays.
READ: IMF says PH economy to grow by just 5.7% this year
Still, DBM said it will stay “optimistic” in implementing the bold catch-up spending plan of agencies to spend public funds on key projects as planned.
Revised Build, Build, Build’ list: Small projects in, difficult projects out
The government has so far spent ₱2.63 trillion as of end-September, against a ₱3.77-trillion spending program.
