DBM expects last year's infra spending to hit P1.4 T
At A Glance
- The Department of Budget and Management (DBM) is confident in national government achieving last year's infrastructure spending target.<br>Overall infrastructure spending for January to December 2023 projected at P1.424 trillion.<br>Total includes transfers to local government units (LGUs) and support to government-owned and controlled corporations (GOCCs) for infrastructure activities.<br> Projected spending would represent 5.8% of the country's gross domestic product (GDP).<br> DBM compares this to 5.3% of GDP program and 5.8% of GDP outturn in the previous year.<br>Higher-than-expected spending attributed to sustained momentum and agency catch-up plans.<br>The Department of Public Works and Highways also intensified infrastructure programs, activities, and projects, contributing to increased spending.
The Department of Budget and Management (DBM) is confident that the national government has achieved its infrastructure spending target for last year.
In the latest national government disbursement performance report, the DBM stated that the overall infrastructure spending for January to December 2023 is projected to reach P1.424 trillion.
This total encompasses transfers to local government units (LGUs) and support to government-owned and controlled corporations (GOCCs) earmarked for infrastructure activities.
The DBM indicated that if this projection materializes, the national government's infrastructure spending will represent 5.8 percent of the country's economy, or gross domestic product (GDP).
“This compares to the 5.3 percent of GDP program and 5.8 percent of GDP outturn in the previous year,” the agency said.
The DBM attributed the higher-than-expected spending to a sustained momentum in expenditure during the final two months of the year, propelled by the implementation of agency catch-up plans.
Furthermore, the Department of Public Works and Highways (DPWH) intensified its infrastructure programs, activities, and projects, contributing to the increased spending, the DBM said.
In October, the Marcos administration’s infrastructure and other capital outlays accelerated by 75 percent to P107.3 billion from P61.2 billion in the same month in 2022.
“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.