Infra spending jumps 44% to P50 billion in February

MANILA, Philippines — The government’s infrastructure expenditures in February jumped by nearly 44 percent to P50.5 billion from a year ago level of P35.1 billion as a result of road project completions and other capital outlays of various agencies, the Department of Budget and Management (DBM) reported yesterday.

The latest growth was faster than the 25.2 percent increase recorded in January, in which infrastructure expenditures amounted to P43.3 billion.

For the first two months, infrastructure spending rose by 34.6 percent to P93.8 billion compared to the P69.7 billion reported in the same period in 2017.

The DBM attributed the increase in infrastructure spending to the completion of projects by the Department of Public Works and Highways, such as the improvement and rehabilitation of dike systems, flood control and mitigation structures, and construction of roads, bridges and school buildings.

 “The higher infrastructure spending also stemmed from the acquisition of office building of the Bureau of Internal Revenue-Revenue Region 8, the construction of dry dock facility of the Department of National Defense-Philippine Navy, as well as the opening of letter of credit in connection with the Comelec’s  option to purchase vote counting machines for the 2019 National and Local Elections,” the agency said.

Infrastructure projects form part of the government’s capital outlays, which surged by 72 percent to P74.7 billion in February from P43.5 billion in the same month in 2017.

Other forms of capital outlays include equities or investments of the national government in the authorized capital stock of state corporations and capital transfer to local government units.

Capital transfer to LGUs rose almost three times to P24.2 billion from P8.4 billion last year.

According to the DBM, the substantial growth in infrastructure outlays contributed to the 36.9 percent growth in total government expenditures in February from P175.6 billion to P240.3 billion.

The DBM said disbursements are expected to further quicken in March as agencies seek to utilize their remaining cash allocations that will only be valid until the last working day of March.

 “In all, spending will remain upbeat owing to the implementation of various infrastructure projects and banner social programs, as well as from the settlement of billings and claims from prior years’ obligations,” it said.