The national government’s disbursements for infrastructure and other capital outlays in July jumped 25 percent against the previous year’s level, data from the Department of Budget and Management showed.
In its website, DBM said infrastructure spending for the month stood at P48.4 billion, P9.7 billion higher than the P38.7 billion spent a year ago.
The DBM attributed the growth in capital expenditures to the implementation of flood control, road improvement, and road widening projects, and the acquisition of naval and air defense assets under the Armed Forces of the Philippines’ modernization program.
Also contributing to the increase in infrastructure expenditures are the purchase of equipment and other infrastructure outlays under the Health Facilities Enhancement Program and payment for transport infrastructure projects such as the right-of-way acquisition for the Southwest Intregrated Transport System (ITS) project and completed civil works for the LRT-2 East Extension project.
Year-to-date, infrastructure and other capital expenditures stood at P297.5 billion, an 11.1 percent increase from the previous year, owing to the implementation of road infrastructure programs, modernization of defense facilities and assets of the Department of National Defense and other capital outlay projects in other agencies.
Meanwhile maintenance and other operating expenses in July reached P38.3 billion, 41.1 percent more than the level in July 2016.
The DBM said the huge expansion in maintenance expenditures is attributed to the implementation of social services programs such as the assistance to victims of disasters and calamities, conditional cash transfers and supplemental feeding program; procurement of drugs, medicines and vaccines, and medical assistance programs; and the operating requirements of DepEd schools nationwide.
Maintenance spending for the month also includes the P1-billion payment of insurance premium to the Government Service Insurance System in connection with the disaster-risk insurance coverage of government facilities against natural calamities.
As of end-July, maintenance expenses grew 6.4 percent to P246.6 billion.
“It is worthy to note that the pace of maintenance expenditures is gradually accelerating as indicated by the 6.4 percent growth as of July this year,” the DBM said.
“This is a significant improvement from the 1.8 percent increase recorded in the first semester, which indicates that spending agencies are catching up on their implementation delays and bottlenecks encountered at the start of the year,” it added.
Total disbursement in July grew by 11 percent to P245.1 billion, while it posted a growth of 9.3 percent to P1.58 trillion for the seven-month period.
Meanwhile, the DBM said as of July 2017, the remaining program balance still available for release for the rest of the year amounted to P452.9 billion or 13.5 percent of the P3.35 trillion obligation program.
“The line agencies still have around five more months to expend these allotments which could further increase disbursement levels. The growth of disbursements in July this year, which is double the growth for the same month in 2016, is a positive indication that the government has gotten past the adjustment stage or transition period,” the DBM said.
“This gives us optimism that the growth of government spending will be sustained until the end of the year. This expectation is supported by the spending behavior of line agencies,” it added.
The DBM said based on historical trend, disbursements are usually higher in the fourth quarter as the implementation of government programs and projects is accelerated or completed before the year ends and ahead of the closing of books.
In its website, DBM said infrastructure spending for the month stood at P48.4 billion, P9.7 billion higher than the P38.7 billion spent a year ago.
The DBM attributed the growth in capital expenditures to the implementation of flood control, road improvement, and road widening projects, and the acquisition of naval and air defense assets under the Armed Forces of the Philippines’ modernization program.
Also contributing to the increase in infrastructure expenditures are the purchase of equipment and other infrastructure outlays under the Health Facilities Enhancement Program and payment for transport infrastructure projects such as the right-of-way acquisition for the Southwest Intregrated Transport System (ITS) project and completed civil works for the LRT-2 East Extension project.
Year-to-date, infrastructure and other capital expenditures stood at P297.5 billion, an 11.1 percent increase from the previous year, owing to the implementation of road infrastructure programs, modernization of defense facilities and assets of the Department of National Defense and other capital outlay projects in other agencies.
Meanwhile maintenance and other operating expenses in July reached P38.3 billion, 41.1 percent more than the level in July 2016.
The DBM said the huge expansion in maintenance expenditures is attributed to the implementation of social services programs such as the assistance to victims of disasters and calamities, conditional cash transfers and supplemental feeding program; procurement of drugs, medicines and vaccines, and medical assistance programs; and the operating requirements of DepEd schools nationwide.
Maintenance spending for the month also includes the P1-billion payment of insurance premium to the Government Service Insurance System in connection with the disaster-risk insurance coverage of government facilities against natural calamities.
As of end-July, maintenance expenses grew 6.4 percent to P246.6 billion.
“It is worthy to note that the pace of maintenance expenditures is gradually accelerating as indicated by the 6.4 percent growth as of July this year,” the DBM said.
“This is a significant improvement from the 1.8 percent increase recorded in the first semester, which indicates that spending agencies are catching up on their implementation delays and bottlenecks encountered at the start of the year,” it added.
Total disbursement in July grew by 11 percent to P245.1 billion, while it posted a growth of 9.3 percent to P1.58 trillion for the seven-month period.
Meanwhile, the DBM said as of July 2017, the remaining program balance still available for release for the rest of the year amounted to P452.9 billion or 13.5 percent of the P3.35 trillion obligation program.
“The line agencies still have around five more months to expend these allotments which could further increase disbursement levels. The growth of disbursements in July this year, which is double the growth for the same month in 2016, is a positive indication that the government has gotten past the adjustment stage or transition period,” the DBM said.
“This gives us optimism that the growth of government spending will be sustained until the end of the year. This expectation is supported by the spending behavior of line agencies,” it added.
The DBM said based on historical trend, disbursements are usually higher in the fourth quarter as the implementation of government programs and projects is accelerated or completed before the year ends and ahead of the closing of books.
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