Public infra spending up 20.5% to P37.9 B

MANILA, Philippines - Public infrastructure spending maintained a double digit growth as of November last year, rising 20.5 percent to P37.9 billion as the government stepped up disbursements  to sustain the economy’s upward momentum.

The Department of Budget and Management reported that total disbursements grew 9.2 percent to P1.68 trillion from January to November 2013 even as the government is grapping with billions in reconstruction cost for areas severely damaged by natural and man-made calamities during the fourth quarter.

The DBM had already released a total of P1.91 trillion or 95.3 percent of the total P2.006 trillion obligation for 2013 as of November. This covers 96.8

 percent of specific budgets of government agencies and departments under the 2013 General Appropriations Act (GAA).

The amount covered the National Housing Authority’s housing program for informal settler families as well as funding support for pension, terminal leave, retirement gratuity and other benefits of retiring government employees.

The disbursements for November also included Quick Response Funds under the Department of Social Welfare and Development (DSWD) to provide immediate assistance to typhoon Yolanda-affected areas.

Budget Secretary Florencio ‘Butch’ Abad said government spending on infrastructure would continue at fast pace as the country aims to be at par with its neighboring countries and achieve sustained inclusive growth.

“Even with the development challenges posed on our economy by consecutive calamities—and the toll these disasters took on government operations—our disbursements for infrastructure and other capital outlay by end-November nonetheless posted double-digit growth levels,” Abad said.

According to the DBM, about P14.6 billion in supplemental appropriations will augment the 2013 Calamity and Quick Response Funds.  The money would be used to repair and reconstruct permanent structures in the strorm-ravaged areas.

Personal Services reached P538 million, up 8.5 percent due to to salary adjustments, higher cumulative retirement gratuity and terminal leave claims,  grant of the 2012 Performance-Based Bonus, and payment of Total Administrative Disability (TAD) pension of World War II veterans.

Maintenance and other operating expenditures dropped from 20.7 percent as of October to 12.4 percent or P28 billion as of November.

Subsidies to state-owned corporations, however, jumped 49.2 percent to P39.1 billion largely due to significant fund releases to the NHA and the Philippine Health Insurance Corporation (PHIC) for the implementation of social protection programs.