MANILA, Philippines - Infrastructure spending soared by 35.6 percent to P104.6 billion in the first five months of the year compared to the P77.1 billion posted in the same period last year, Budget and Management Secretary Florencio Abad said on Tuesday.
“The implementation of program budgeting helped bring a more deliberate and strategic approach to spending, so that expenditures are closely aligned with President Aquino’s campaign for long-term, inclusive growth. Key to that is ensuring swift disbursements to high-impact sectors—such as public infrastructure and capital outlay—and other crucial industries that will deliver immediate benefits to Filipinos and allow us to sustain the country’s strong economic momentum,†Abad said.
In the year's first quarter, the Philippines grew 7.8 percent, overtaking China as the region's fastest-growing economy.
However, analysts say the growth is neither sustainable nor inclusive. Many Filipinos remain jobless and the poor and the middle class complain that economic benefits have yet to trickle down to them.
The jump in spending brought total disbursements to P751.2 billion as of May, 12.4 percent higher than comparable levels in 2012.
Expenditures, meanwhile, went past the 8.1-percent growth average for January-May since 2005.
Bigger spending for social protection and tourism programs also contributed to the 25.1-percent increase in maintenance and other operating expenditures for the first five months of the year.
Abad said although disbursements under net lending as of May decreased year-on-year from 2012, the drop showed that government no longer covered for the losses incurred by government-owned or controlled corporations.
Abad said the government's spending performance will boost growth for the second semester of the year as the administration of President Benigno Aquino III focuses on accelerated investments.
“We are working actively with our account management teams in key implementing agencies to sustain and further improve the pace of disbursements, as well as to eliminate expenditure bottlenecks that might prevent our agencies from making the most of their fund releases,†Abad said.