FOR MONDAY ISSUE
The national government's infrastructure spending is on track to meet its full-year target, the Department of Budget and Management (DBM) said.
Based on the DBM's national government disbursement performance report, the budget allocated for infrastructure projects in the second semester of 2024 constitutes 56.1 percent of the total P1.51 trillion program.
Budget Secretary Amenah F. Pangandaman earlier said that from January to June, the government disbursed P611.8 billion for infrastructure, leaving over half of the budget available for the last six months.
Pangandaman said that infrastructure disbursements at end-June increased by P104.5 billion, or 20.6 percent, compared to the previous year and were equivalent to 5.7 percent of the gross domestic product.
In total, the remaining infrastructure budget for 2024 amounted to P898.2 billion.
“This will constitute payments/progress billings from ongoing construction works/projects, including those that were started or accelerated during the summer season,” DBM said.
Infrastructure spending is expected to be boosted by the rollout of road programs and the completion of ongoing projects by the Department of Public Works and Highways (DPWH).
Moreover, capital outlay initiatives tied to the revised Armed Forces of the Philippines modernization program will also contribute to this infrastructure spending growth.
“As early as January we have already provided them with their allotments… Most of the projects of the DPWH have undergone early procurement… so by January, most projects were already implemented,” Pangandaman said.
From January to June, total infrastructure disbursements, which cover transfers to local government units (LGUs) and subsidies and equity for state-owned firms, rose by 18.4 to P720.5 billion from P608.6 billion in the same period a year ago
Under President Marcos’ term, the government is targeting an infrastructure spending-to-gross domestic product (GDP) ratio of 5.0 percent to 6.0 percent annually between 2024 and 2028.
Meanwhile, overall government spending for the first half was 14.6 percent higher at P2.76 trillion from P2.41 trillion a year ago.
In June alone, the total infrastructure and other capital outlays amounted to P139.7 billion during the month, up by 20.3 billion or 17 percent from last year’s P119.4 billion.
On the other hand, the DBM also reported that personnel services expenditures and the combined allotment and capital transfers rose to P701.9 billion and 380.4 billion during the first half of 2024, respectively.
The government also recorded higher maintenance and other operating expenses (MOOE) to P479.2 billion due to assistance and subsidies for social services.
As of end-June, the remaining program balance amounted to P472.3 billion or 8.2 percent of the record P5.768 trillion budget for the year.