Infrastructure spending along with other capital outlays jumped 44.8 percent in November to P43.8 billion from P30.3 billion a year ago, as the government completed several infrastructure projects last year, data from the Budget Department show.
“The rise in infrastructure spending can be attributed to our ambitious ‘Build, Build, Build’ program, which will usher in the ‘golden age of infrastructure’ in the Philippines,” Budget Secretary Benjamin Diokno said in a statement.
The November data brought the 11-month infrastructure and other capital outlays to P486.5 billion, up 14.2 percent from P426.1 billion a year earlier.
Data, however, showed that on a month-on-month basis, infra and other capital outlays in November 2017 declined 14.9 percent from P51.5 billion recorded in October 2017.
The boost in infrastructure spending lifted total disbursements in November to P252.1 billion, up 10.4 percent over P228.4 billion a year ago.
Some of the major projects that contributed to the steep rise in infrastructure spending in November were the completion of road infrastructure projects of the Public Works Department such as flood control projects and the construction, concreting and widening of road networks nationwide.
The acquisition of various equipment under the Capability Enhancement Program of the Department of the Interior and Local Governance-Philippine National Police, and payments for supplies, repair and maintenance of patrol vessels of the Philippine Coast Guard also contributed to the rise in spending for the month.
Diokno said in coordination with the line agencies, the Budget Department exerted all its efforts to ensure the expedient and prudent management of public resources.
“We have actively sought to limit underspending, defined as the deviation of program from actual disbursements, and expect to see even better results with the full-year 2017 disbursement report. In essence, the DBM will not let up in its reform initiatives and will strive for continual improvement,” Diokno said.
Under the P8.4-trillion ‘Build, Build, Build’ program of the Duterte administration, the government aims to build more roads, bridges, seaports, airports, railways and water and irrigation projects in the country to spur more economic activities.
Also included in the program is the construction of a 24-kilometer subway that will traverse Metro Manila in a bid to decongest the metropolis of heavy traffic that has been causing the government billions of pesos in economic losses daily.
Data showed that from January to November 2017, total government spending reached P2.49 trillion, up 10.1 percent from P2.265 trillion seen in the same period a year ago.
“The statistics on government disbursements only bolster our thrust for efficient and effective public service delivery,” Diokno said.
Another major contributor to the robust spending in November was the expenses on personnel services, which increased 17.1 percent to P97.6 billion from P83.4 billion a year ago, on account of the release of the year-end bonus and cash gift of government employees, as well as the release of 2016 performance-based bonus of some agencies.
Allotment to local government units also grew 14.5 percent to P32.8 billion from P28.6 billion.
Economists earlier said with the signing into law of the first package of the Comprehensive Tax Reform Program on Dec. 19 by President Rodrigo Duterte, the massive infrastructure program would be in full steam ahead that could drive economic expansion further.
The government aims to achieve an annual economic growth of 7 percent to 8 percent from
2018 to 2022, The economy grew 6.7 percent in first three quarters of 2017 and 6.9 percent in the whole of 2016.
