Infra, capital spending jumps to P81B in Nov
Credit to Author: Mayvelin U. Caraballo, TMT| Date: Thu, 30 Jan 2020 16:25:27 +0000
STATE infrastructure and capital spending expanded last November on the back of public works, transport and agricultural projects, the Department of Budget and Management (DBM) reported on Thursday.
In its latest disbursement report, the DBM said spending increased to P80.9 billion that month, a 28.6-percent increase from P62.9 billion in the same month in 2018.
The amount, however, was lower than the P82.2 billion spent last October.
The Budget department traced the latest figure to the payment for completed and partially completed infrastructure projects of the Department of Public Works and Highways, such as roads, bridges and flood-control structures; and the Department of Transportation (DoTr), such as airports and seaports.
“Disbursements of the DoTr for payment of right-of-way acquisitions, and construction of buildings of the LTO (Land Transportation Office) and LTFRB (Land Transportation
Franchising and Regulatory Board), likewise contributed to higher infrastructure spending for the period,” it said.
The department also said some P1.4 billion was released to the Department of Agriculture for the implementation of the Agricultural Competitiveness Enhancement Fund Lending Assistance for Small Farmers and Fisherfolks.
This program is intended for the purchase of farm equipment, farm improvement, and acquisition or establishment of agricultural facilities.
Higher spending in November, however, failed to boost the year-to-date tally, which dropped by 2.6 percent to P709.4 billion.
The January-to-November 2019 figure put total national government spending — which included expenditures for maintenance, personnel services and subsidies — at P3.30 trillion, up 6.7 percent or P208.2 billion from the amount in the same period the year before.
“Infrastructure spending was lower year-on-year due to contractions recorded in the previous months as a result of the delay in 2019 budget approval and the election ban,” the DBM said.
A dispute between the Senate and the House over alleged insertions resulted in the four-and-a-half-month delay in the passage of the 2019 budget. This forced the government to run on the previous year’s outlay, limiting it to spend for items detailed in the 2018 appropriations and not on programs and projects supposed to be implemented for 2019.
On top of the budget impasse, government spending was also banned from March to May because of the May 13, 2019 midterm elections.