MANILA, Philippines — Public spending on infrastructure amounted to P881.7 billion in 2019, exceeding the government’s target due to the effective implementation of catch-up measures toward the end of the year, according to the Department of Budget and Management.
According to the latest DBM data, the national government’s infrastructure and capital outlays rose by 9.7 percent to P881.7 billion in 2019 from P803.6 billion in 2018.
The figure was likewise 2.6 percent higher than the government’s infrastructure expenditure program of P859.4 billion for the period.
“Notwithstanding the contraction recorded in the first two quarters due to the delayed budget approval and the election ban, infrastructure spending ended with a positive growth rate as a result of the implementation of catch-up measures,” the DBM said.
These measures included the 24/7 work schedule for the construction of major infrastructure projects, and the streamlining of the process to expedite right-of-way acquisitions and facilitate payments.
In particular, the DBM said the increase in infrastructure disbursements was driven by the completion or partial completion of big-ticket projects of the Department of Public Works and Highways (DPWH).
The growth was likewise propelled by the implementation of projects by the Department of Transportation – such as the Metro Manila Subway Project, North-South Commuter Railway Project, and MRT 3 rehabilitation project – and the Department of National Defense, particularly the Armed Forces of the Philippines Modernization Program.
Including equity and capital transfer to local government units, the DBM said total capital outlays breached the P1 trillion mark in 2019, increasing by eight percent to P1.04 trillion from P963.1 billion in 2018.
This was also 0.7 percent higher than the target of P1.032 trillion for full-year 2019.
For December alone, actual infrastructure and capital outlays surged more than two-fold to P177.9 billion from P75.6 billion in 2018.
Infrastructure spending during the fourth quarter of 2019 likewise jumped by 46.4 percent to P341 billion from P232.9 billion in the same period of 2018. This exceeded the fourth-quarter target of P264.9 billion by 28.7 percent.
The delay in the passage of the 2019 budget, worsened by the election ban on public works last year, pushed back government disbursements in the first half of 2019. The administration’s economic team then rolled out a spending catch-up program to make up for these backlogs.
As a result of these measures, government disbursements in 2019 grew by 11.42 percent to P3.8 trillion from P3.41 trillion in 2018. This marked the second consecutive year the government exceeded its spending program which was set at P3.77 trillion in 2019.
For 2020, the national government is expected to yield P3.54 trillion in revenues and to disburse P4.21 trillion in funds, translating to a budget deficit ceiling of P677.6 billion, or 3.2 percent of GDP.
Economic managers said spending would be driven by the timely passage of the 2020 budget as well as the extension of the 2019 General Appropriations Act.
Robust spending is seen to help offset the adverse impact of recent developments, particularly the outbreak of the coronavirus disease 2019.
By Mary Grace Padin
