Category : Press Release
Date : July 10, 2017
Agency : Department of Budget and Management
Title : Gov’t data in May shows surge in spending and Infrastructure Outlays
Article : The National Government Disbursement Performance as of May 2017 revealed the pick-up in State spending as disbursements grew by 20.4 percent (compared to May 2016), reaching P261.7 billion. This shows that policy reforms for more efficient project implementation have started to gain traction. The encouraging data bodes well for the future prospects of government spending in 2017, ensuring the swift delivery of public goods and services to all Filipinos. For fiscal year 2017, the General Appropriations Act (RA 10924) sets the National Budget at P3.35 trillion, equivalent to 21.1 percent of GDP.
 
Furthermore, Current Operating Expenditures was recorded at P200.6 billion, resulting to a 17.9 percent increase. Noteworthy is the growth in maintenance spending, as Maintenance and Other Operating Expenditures (MOOE) increased by 34.0 percent, settling at P52 billion. This was driven by the pay-out of cash grants to Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries, the grant of operating requirements and allowances to teachers of the Department of Education, and the expenses incurred in preparation for the ASEAN Summit. The increase also reflects payments that should have been made in April but spilled over in May given the numerous holidays in April.
 
Personnel Services registered at P89.7 billion, or an 18.5 percent increase, primarily due to the release of P32.6 billion for the mid-year bonus of government employees. As per the second tranche implementation of the Compensation Adjustment of 2016, government employees are entitled to a mid-year bonus equivalent to one month’s salary.
 
Meanwhile, Capital Outlays amounted to P60.9 billion, or an increase of 29.1 percent. The boost was driven by the surge in Infrastructure and Other Capital Outlays spending, which expanded by 31.4 percent, reaching P46.2 billion. This is primarily a result of completed road construction, repair and rehabilitation, and flood control infrastructure projects implemented by the DPWH.
 
Some of these projects include the Impalutao - Dalwangan Road Section in Bukidnon, the Calintaan-Sablayan Road Section in Occidental Mindoro, and the Pasig-Marikina River Channel Improvement Project (Phase III).
 
The growth in infrastructure spending is a positive sign that the “Build, Build, Build” agenda of the Duterte Administration is gaining headway. Infrastructure development is an integral aspect of the 0+10 Point Socio-economic Agenda of President Duterte, as well as a crucial strategy under the Philippine Development Plan of 2017 - 2022. Infrastructure is envisioned to drive economic growth, generate jobs, improve connectivity, and create economic opportunities for Filipinos across all regions. It will support the government’s objectives of rapid and inclusive growth in the medium term, which will drive the Philippine economy to upper middle-income status by 2022 and reduce poverty to 14 percent from 21.6 percent in 2015.
The government intends to spend P8 to P9 trillion for public infrastructure in the next six years. For FY 2017, P847.2 billion is allocated for infrastructure or 5.3 percent of GDP. Meanwhile, the preliminary infrastructure budget for the FY 2018 Budget is at P1 trillion or 5.8 percent of GDP. Infrastructure spending will gradually rise from 5.3 percent in 2017 to 7.3 percent of GDP by 2022.
 
For the full assessment of the National Government Disbursement Performance as of May 2017, visit: http://www.dbm.gov.ph/wp-content/uploads/DBCC/2017/May%202017%20Assessment_for%20posting.pdf. For more information on the Department of Budget and Management, visit www.dbm.gov.ph.
 

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