Infrastructure spending drops amid corruption in DPWH

MANILA, Philippines — Government spending on infrastructure and other capital outlays continued to decline in August, as the Department of Public Works and Highways (DPWH) carried out ongoing validation of the implementation and completion of projects nationwide.

Infrastructure spending as of August amounted to P84.9 billion, down by nearly 22 percent from last year’s level of P108.6 billion, based on the latest data from the Department of Budget and Management (DBM).

“The downturn was mainly attributed to the ongoing validation of the status of implementation, quality and completion of infrastructure projects implemented by the DPWH nationwide,” the DBM said.

It added that the ongoing validation consequently delayed the submission of contractors’ progress billings and extended the timelines for processing payment claims, resulting in slower disbursement of funds for various infrastructure projects nationwide.

“Adverse weather conditions in August, likewise, affected the progress of implementation of various infrastructure projects, particularly in areas or regions hit by heavy habagat rains and typhoons,” the budget department added.

Following the Commission on Elections’ 45-day ban on public works spending from March 28 to May 12, the sluggish pace of disbursements in August marked the lowest level of government infrastructure spending since April this year.

It also reflected a sustained downturn in government expenditures, as infrastructure spending had already declined in July to P93.3 billion on a month-on-month basis.

Despite the decline in disbursements at the DPWH, the budget department stated that the Department of Transportation reported higher disbursements for local counterpart funding of foreign-assisted projects.

It also included an increase in expenditures in the Department of Education for the construction, rehabilitation and repair of school buildings, partially offsetting the contraction in overall infrastructure spending.

For the eight-month period, government spending on infrastructure remained behind by 5.6 percent to P798.4 billion. This marked a decrease of P46.9 billion from P845.3 billion in the same period last year.

Finance Secretary Ralph Recto earlier reported that the Philippine economy might fall short of meeting its full-year growth target, as slower revenue collection and dampened government spending continue to weigh on the country’s expansion prospects.