Infrastructure spending increased 18 percent in August to P40.1 billion from P34 billion a year ago, bolstering the total government spending for the month, data from the Budget Department show.
“The amount includes payments for completed infrastructure projects of the Department of Public Works and Highways [road improvement works, repair and rehabilitation, including flood control projects, construction/improvement of pumping stations, dike and drainage systems],” the agency said in a statement.
The amount also covered capital outlay projects of the Education Department, such as repair and rehabilitation of school facilities and those of the Health Department, including land outlays for health facilities and purchase of hospital equipment.
The P40-billion infrastructure and other capital outlays spending in August, however, was slower by 17.1 percent than P48.4 billion in July.
This brought infrastructure and other capital outlays spending in the first eight months to P337.6 billion, up 12 percent from P301.7 billion in the same period last year.
Total government spending in August grew 13.9 percent to P201.6 billion from P177 billion a year earlier. Other major sources of spending growth were maintenance expenditures (P29.6 billion) which went up by P4.6 billion or 18.4 percent year-on-year; personnel services (P55.1 billion) which rose P4.4 billion or 8.7 percent; and allotment to local government units (P32.6 billion) which climbed P4 billion or 13.8 percent.
Total government spending in January to August also increased 9.8 percent P1.777 billion from P1.619 billion in the same eight-month period last year.
The Budget Department said P426.7 billion, representing 12.7 percent of the P3.350 trillion obligation program for 2017, was still available for release to line agencies in the remaining months.
Of this amount, P236.8 billion represent allocations under the Special Purpose Funds which comprised largely of the miscellaneous and personnel benefits fund (P75 billion), pension and gratuity fund (74.6
billion), budgetary support to government-owned and –controlled corporations (P51.6 billion) and special shares of local government units in the proceeds of national taxes (P29.6 billion).
“In nominal terms, the disbursements for the month of September are expected to be substantial owing to the huge infrastructure spending requirements of the DPWH…,” DBM said.
The Duterte administration is ramping up fiscal expenditures on infrastructure projects as a part of the ambitious P8.44-trillion “Build, Build, Build” program. The government aims to build airports,
seaports, highways, bridges, railways and water and irrigation facilities across the country to boost economic growth and create more jobs.