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Manila Bulletin devider Business devider Gov't infra spending surges 75% in October

Gov't infra spending surges 75% in October

Published Jan 5, 2024 07:54 am

At A Glance

  • The Marcos administration's infrastructure and capital outlays accelerated by 75% to P107.3 billion in October last year from P61.2 billion in the same month in 2022, the Department of Budget and Management (DBM) said.<br>The substantial increase was largely credited to the disbursements of the Department of Public Works and Highways (DPWH).<br>October's infrastructure spending brought the national government's 10-month total to P964.9 billion,  a 23% increase from the P781.5 billion recorded in the same period of the previous year.<br>The DBM attributed the rise in the end-October figure to the strong spending performance of the DPWH for its road infrastructure program.<br>Disbursements for the modernization projects and program of the Department of National Defense, as well as foreign-assisted railway projects of the Department of Transportation, also contributed to the escalation in spending.

Infrastructure spending posted a sharp increase in October last year, attributed to the robust disbursements made by the Department of Public Works and Highways (DPWH), data from the Department of Budget and Management (DBM) revealed.

The Marcos administration’s infrastructure and other capital outlays accelerated by 75 percent to P107.3 billion in October from P61.2 billion in the same month in 2022, document released by the DBM showed on Friday, Jan. 5.

“The substantial increase was largely credited to the disbursements of the DPWH,” the DBM said in a report.

The budget department said that the DPWH used some funds to cover right-of-way claims.

The DBM also noted that swifter processing and payment of accounts payables, as well as prompt mobilization fees or advances to contractors, led to increased infrastructure spending for the month. 

Furthermore, the DBM said the DPWH's strict monitoring of project progress by designated engineers and ongoing encouragement for all implementing offices to meet their annual physical and financial targets also contributed to the boost in spending.

“Similarly, the releases for the Revised AFP [Armed Forces of the Philippines] Modernization Program (RAFPMP) of the DND [Department of National Defense] contributed to the higher infrastructure spending for the period,” the department added.

October's infrastructure spending brought the national government's 10-month total to P964.9 billion, a 23 percent increase from the P781.5 billion recorded in the same period of the previous year.

The DBM attributed the rise in the end-October figure to “due to the strong spending performance of the DPWH for its road infrastructure program.”

Additionally, it noted that disbursements for the modernization projects and program of the DND, as well as foreign-assisted railway projects of the Department of Transportation, contributed to the escalation in spending.

Previously, the DBM reported that total expenditures for the first 10 months of the year rose by 4.5 percent to P4.241 trillion from P4.058 trillion in the same period in 2022.

The Development Budget Coordination Committee estimated that for the full year of 2023, disbursements may reach P5.340 trillion, a 3.5 percent increase compared to the previous year.

Related Tags

Department of Public Works and Highways infrastructure spending
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