Government infrastructure spending slows down in August
By DERCO ROSAL
Infrastructure spending declined in August, mainly due to the weak disbursements made by the Department of Public Works and Highways (DPWH), Department of Budget and Management (DBM) data revealed.
In a DBM report, the Marcos administration’s spending on infrastructure and other capital projects decreased 11 percent to P108.6 billion in August from P122.1 billion the same month last year.
From January to August, outstanding checks totaled P22 billion, an increase from P17 billion in August 2023, reflecting payments for completed infrastructure work that contractors have not yet cashed.
August’s lower infrastructure spending is partly due to contractors delaying the submission of billing documents, which has impacted the processing and release of payments for ongoing projects.
Additionally, adverse weather conditions have slowed project development, leading to adjustments in timelines for some major infrastructure initiatives.
Also, capital expenditures declined compared to last year, excluding significant releases for local counterpart funds for various foreign-assisted projects by the Department of Transportation (DOTr).
This decline in infrastructure spending, along with subsidy subsidy support to government corporations, largely account for the decline in the national government spending for August, the report noted.
In August, the government spent P440.5 billion, which is P3 billion, or 0.7 percent less than its spending last year.
On the other hand, the government’s first eight month’s disbursements reached P3.69 trillion, up by 11.3 percent year-on-year, with notable rises in infrastructure and capital outlays.
Meanwhile, the Development Budget Coordination Committee (DBCC) anticipates a rebound in September disbursements, expecting at least a 10-percent increase, surpassing last year’s 8.1-percent growth.
Earlier, Budget Secretary Amenah Pangandaman encouraged government agencies to aim for “100 percent” infrastructure expenditure to maintain the country’s economic development.
“I urge all NGAs (national government agencies) with infra(structure) projects to aim for 100 percent budget utilization so that we will sooner see the fruits of our Build Better More Infrastructure Program while we continue to hit our GDP (gross domestic product) targets," Pangandaman said in a statement.
Pangandaman made the call, as she stressed that the government’s infrastructure spending would boost the country’s GDP growth in the third quarter of 2024.