Budget release hits 73% as of April

MANILA, Philippines - The government has already released 73 percent of the P2.006 trillion budget for state agencies in the first four months of the year, the Department of Budget and Management (DBM) reported over the weekend. 

Of the remaining P541.7 billion to be released this year, P249 billion will go to items under the general appropriations which include the implementation of programs and projects of agencies as well as expenditure items under the special purpose funds.

Other big-ticket items under the program balance include road and bridge construction projects of the Department of Public Works and Highways (P14 billion), requirements of Basic Educational Facilities under DepEd (P6.6 billion), banner programs of the Department of Agriculture (P5 billion), and the AFP Modernization Fund (P5 billion).

The remaining P292.6 billion will be used to service debt and for tax subsidies, net lending and tax refunds.

The DBM expects the government’s momentum in spending to continue as a result of the implementation of various expenditure reforms by the oversight and implementing departments/agencies.

The government said it would continue to monitor the performance of spending agencies through the account management teams to facilitate timely implementation of programs, which are essential in sustaining the growth trajectory.

Government disbursements reached P584 billion as of April, exceeding last year’s figure by 12.9 percent.  It outpaced the growth recorded in the first quarter of the year by almost four percentage points as spending for maintenance and capital outlays continued to rise.

Personal services rose 11.6 percent to P177.7 billion mainly on account of the salary adjustments due to the implementation of the last tranche of the salary standardization law, higher retirement gratuity and terminal leave benefits and remuneration of honoraria and per diems of employees involved in the preparation activities for this year’s elections.

Spending for infrastructure and other capital outlays rose by 44.8 percent to P75.2 billion, which can be broken down into current year payables (P57.2 billion) and encashment of checks issued in 2012 (P18 billion).  Around P40 billion was spent for DPWH project.

In April alone, spending grew by 25.3 percent to P153.2 billion, surpassing the previous year’s level by 15.8 percent.  The amount is nearly P10 billion higher than the average monthly disbursements recorded in the first quarter.