Government optimistic it will meet this year’s spending target

MANILA, Philippines - The Aquino administration is optimistic that it would be able to meet this year’s program to spend P1.839 trillion this year.

Budget and Management Secretary Florencio Abad told The Star that it’s possible to meet the target in terms of release of allotments.

Abad said even in terms of cash disbursements, expenditures have also been improving and would continue to improve.

“In terms of cash disbursements, it will be dramatically higher than last year also,” Abad said.

He noted for instance that many government agencies such as the Department of Public Works and Highways (DPWH) have significantly improved in their absorptive capacities such as in terms of release of allotments and cash disbursements.

The Aquino administration has been trying to boost spending to fuel economic growth.

In the ten months of October, the government spent P1.369 trillion, which is 14.5 percent higher than year-ago figures.

Of the amount, the government spent P1.102 trillion for the regular disbursements and P266.689 billion for interest payments.

This is an improvement from the P960.179 billion for regular disbursements and P235 billion for interest payments.

For the whole year, the government has programmed to spend P1.839 trillion or P317 billion for interest payments and P1.102 trillion for the regular disbursements.

While government spending has been improving, the government’s end-October deficit recorded at P115.736 billion is still way below the programmed ceiling of P279 billion for the whole year.

Nevertheless, Abad said the government would continue to improve spending for various needs including infrastructure projects under the government’s public-private partnership program (PPP) and other road projects.

For instance, the DPWH is allotting P5 billion for several high-impact flood-control projects in Metro Manila and nearby provinces.

The P5-billion infrastructure fund will be divided among 15 projects, the Budget department said.