Infrastructure and capital outlays spending of the government jumped 53 percent, or P36.3 billion, to P104.8 billion in the first quarter of 2016 from a year ago, the Budget Department said over the weekend.
Budget, in its latest expenditures report for the January-to-March period this year, said infrastructure spending grew the fastest among the three major expense items, some worth of additional outlays.
The department cited the completed works of the Department of Public Works and Highways from its regular maintenance, repair and rehabilitation operations of road networks nationwide.
Infrastructure projects of the Department of Transportation and Communications and the Autonomous Region in Muslim Mindana and the health facilities enhancement program of the Health Department also boosted infrastructure spending.
Contributing to the higher spending were the projects under the Armed Forces of the Philippines Modernization Program, such as the purchase of ammunitions and acquisition of C130 aircraft and the construction of police stations and procurement of various equipment under the Capability Enhancement Program of the Philippine National Police.
Infrastructure spending for the three-month period resulted in a 17-percent increase in expenditures to P591.5 billion.
“This is a significant improvement from the modest 4.5-percent growth posted in the year ago period,” Budget said.
“Spending for the month of January alone increased by 7.3 percent, reversing the 5.4-percent contraction recorded for the same month in 2015. Disbursements for the months of February and March, meanwhile, rose 22 percent and 23.2 percent, respectively—the fastest for the said months in the last six years,” it added.
Personnel services contributed to the growth in disbursement, increasing 6.2 percent to P147 billion in end-March 2016, following the implementation of the first tranche of the Executive Order 201, or the Salary Standardization Law.
Maintenance expenditures expanded 13.7 percent or P11.8 billion due to the implementation of social programs of the Department of Education and several projects of the Department of Health and the Interior.
Public spending in the first quarter, however, was short of P89.2 billion of the P680.7-billion target for the period.
“Most of programs/projects are being obligated by line agencies during the first few months of the year but these are expected to be fully obligated in the succeeding months which will allow spending to catch up with the program,” Budget said.
It said disbursements for the succeeding months were expected to gradually increase.