Gov't likely exceeded Q3 spending goal—DBM
At A Glance
- Public spending likely exceeded the government's third-quarter program by around 10 percent due to accelerated infrastructure expenditures.<br>This increased spending is expected to reduce the underspending recorded during the first semester by around 70% to 75%.<br>The Development Budget Coordination Committee (DBCC) allocated a P1.279 trillion disbursement program for the third quarter of 2023.<br>September saw a continued acceleration in infrastructure and other capital outlays, along with some recovery in maintenance expenditures.<br>As of August 2023, government expenditures amounted to P3.315 trillion. To meet its first nine-month target of P3.862 trillion, the Marcos administration should have spent at least P547 billion in September alone.<br>In September of the previous year, the national government's expenditures totaled P468.6 billion, indicating that spending would need to grow by at least 16 percent to reach the P547 billion goal.<br>The Marcos administration has programmed P3.862 trillion in full-year disbursements for 2023.
Public spending likely exceeded the government's third-quarter program by a tenth, driven by accelerated infrastructure expenditures, the Department of Budget and Management (DBM) said.
In the National Government's August 2023 disbursement report, the DBM indicated that the Marcos administration may have surpassed its spending plan for the July to September period by “more or less 10.0 percent.”
“This is seen to reduce the P170.5 billion underspending recorded during the first semester by around 70.0 to 75.0 percent,” the DBM said.
Under the 2023 quarterly fiscal program, the inter-agency Development Budget Coordination Committee (DBCC) allocated P1.279 trillion disbursements for the third quarter.
“Based on preliminary bank and Treasury data, spending for the month of September likely increased by at least 7.0 percent, albeit lower than the 13.6 percent growth posted for the same month last year,” DBM said.
According to DBM, the slower spending growth can be attributed partially to base effects and a reduction in the national tax allotment (NTA), which refers to the share of national taxes allocated to local government units.
“Nevertheless, this would still result in a solid Q3 [third quarter] disbursement performance which is expected to grow annually,” the DBM said.
The budget department added that there was a sustained increase in infrastructure and other capital outlays during September, along with a partial recovery in maintenance expenditures.
“With the execution of agency catch-up plans underway, the government is optimistic that the P5.228 trillion disbursement program for the year can be attained,” DBM said.
As of August 2023, the government's expenditures stood at P3.315 trillion. To reach its target of P3.862 trillion for the first nine months, the Marcos administration should have disbursed at least P547 billion in September alone.
According to the data from the Bureau of the Treasury, the national government's expenditures in September last year reached P468.6 billion. This implies that spending would need to grow by at leastf 16 percent in order to reach the target of P547 billion.
The Marcos administration has set a target of P3.862 trillion for total disbursements in 2023.