Metro Manila (CNN Philippines, January 21) — Government spending on infrastructure went down for the fifth straight month in November as quarantine rules continued to hinder construction works.
Infrastructure and other capital outlays fell during the month to ₱40.3 billion, a 50.2% plunge from the ₱80.9 billion spent in November 2019, data from the Department of Budget and Management showed. The recent figure is also 29.4% down from the ₱57.1 billion worth of expenditures in October.
In a report, the DBM attributed the decline to “various delays caused by the imposition of community quarantine measures to contain the further spread of COVID-19 in early 2020,” alongside a “one-time expense” in 2019 for building constructions of the Land Transportation Office and the Land Transportation Franchising and Regulatory Board.
Meanwhile, expenditures within January to November hit ₱548.8 billion, 22% less than the ₱703.8 billion spent within the same period in 2019.
“[A]s expected, infrastructure and other capital outlays were lower year-on-year mainly due to the delays encountered in the implementation of public works during the imposition of COVID-19 community quarantine measures, and the discontinuance or deferment of some capital outlay projects which can no longer be implemented nor completed because of the pandemic pursuant to the Bayanihan I Law,” the report read.
The DBM expects spending to speed up in December compared to prior months, citing efforts of line departments to “fast-track” the implementation of programs and projects. Big-spending agencies, particularly the Department of Public Works and Highways have expressed commitment to execute their respective catch-up plans, it added.
Total public expenditures went up by 2.3% year-on-year to ₱374.1 billion in November, which the DBM attributed to higher maintenance spending, allotment to local government units, and subsidy to government corporations and financial institutions.
Meanwhile, state spending within the 11-month period reached ₱3.69 trillion, 11.6% higher than the same timeframe in 2019. The agency cited the government’s health and recovery measures against the COVID-19 crisis for the increase.
Malacañang on Thursday acknowledged there had been a delay in spending given the pandemic, noting it took months before the Inter-Agency Task Force for the Management of Emerging Infectious Diseases decided to greenlight the resumption of construction projects, particularly in areas under enhanced community quarantine or ECQ.
“Talaga pong nagkaroon ng delay pero kampante naman po tayo it will not translate to underspending because we actually disbursed more than what we expected to disburse,” Presidential Spokesperson Harry Roque said during his regular virtual briefing.
[Translation: There really was a delay but we are confident this will not translate to underspending because we actually disbursed more than what we expected to disburse.]
