Gov’t spending on infra projects surges 58% in 2012

MANILA, Philippines - Government spending on infrastructure and other capital outlay jumped by 57.7 percent to P250.8 billion last year, the Department of Budget and Management (DBM) reported yesterday.

Budget and Management Secretary Florencio B. Abad said the increase reflects the Aquino Administration’s goal of advancing infrastructure development to support the country’s long-term growth strategy.

“Last year’s spending levels will buoy our growth strategy this year as we look forward to pouring more investments into infrastructure and capital outlay in 2013. The development of roads and bridges, for example – as well as ongoing initiatives to increase access to tourism hotspots and improve irrigation facilities – will help generate jobs and create thriving markets for local industries,” Abad said.

Spending for maintenance and other operating expenditures (MOOE) rose by nearly 28 percent to P256.7 billion.

“The broadened implementation of the administration’s social protection programs and other banner initiatives accounts for the increase in MOOE expenditures last year. Departments and agencies stepped up the execution of their priority programs, allowing them to provide expanded social services,” Abad said.

These programs include the Pantawid Pamilyang Pilipino Program (4Ps) and KALAHI-CIDSS under DSWD, as well as the Cadastral Survey and National Greening Program under the Department of Environment and Natural Resources, Abad said.

Personal services went up by 8.4 percent to P542.6 billion largely due to the implementation of the last tranche of the Salary Standardization Law III, as well as the requirements for filling vacancies in the Department of Interior and Local Government and the Department of Education.

Expenditures for personal services also supported gratuity and terminal leave claims for the year, which exceeded 2011 levels by nearly P6 billion.

Interest payments (IP), on the other hand, reached P312.8 billion. This covered the semi-annual payments due on bonds issued last January and the higher volume of bond swaps. IP spending also took a smaller share from full-year disbursements in 2012, declining to 17.6 percent from 17.9 percent.