Infra spending up in Q1

MANILA, Philippines – Government infrastructure spending surged more than half in the first quarter and is seen to continue as the outgoing Aquino administration spends more to finish projects, the Department of Budget and Management (DBM) reported.

A total of P104.8 billion was shelled out for infrastructure and other capital outlays as of March, up 52.8 percent from same period a year ago.

The figure accounted for 16.8 percent of this year’s program and was equivalent to 3.21 percent of gross domestic product (GDP). The 2016 target is five percent.

“Infrastructure spending was very good. I was told the DPWH (Department of Public Works and Highways) already awarded more than 60 percent of their projects before the ban,” Budget Secretary Florencio Abad said in a recent interview.

It is also expected to continue. The DPWH, the primary infrastructure agency, had already obligated 38.13 percent of its budget allocations in the first three months.

That was bigger than the 27.39 percent average for national government agencies, which means more funds are already contracted and ready to be disbursed in the coming months.

“First-quarter rate is above the norm, but there is room for further improvement,” Abad said in a text message, noting the quarterly benchmark is 25 percent.

The Aquino government has been criticized in the past five years of persistently falling below spending targets, that at times, partly contributed to a slowdown in growth.

DBM, however, has repeatedly blamed line agencies for not disbursing fast enough despite the bulk of the budget already released to them early in the year.