Infrastructure expenses rise to P74 billion in August

MANILA, Philippines — The government increased its infrastructure spending to P74 billion in August as the administration tries to catch up with it’s expenditure targets for the year, according to the Department of Budget and Management.

Based on the latest national government disbursement performance report of the DBM, state infrastructure expenditure and other capital outlays went up by 3.8 percent to P73.7 billion in August from P70.9 billion in the same period last year.

The DBM attributed this to the faster implementation of infrastructure projects and other construction activities as ordered by the Department of Public Works and Highways (DPWH)   to meet this year’s spending targets.

The DBM said processing of payments for right-of-way claims nationwide also boosted higher infrastructure outlays in August.

However, one-off constructive receipts of cash payments in the same month last year for various projects, such as Metro Manila Subway, the Malolos-Clark Railway, and the Metro Rail Transit Line 3 Rehabilitation project partially offset the growth recorded in infrastructure expenditures.

Payments for some completed capital outlays projects, including the smart campuses program in state universities and colleges and the aviation sector infrastructure projects likewise countered the growth.

For the eight-month period, infrastructure spending rose by more than 10 percent to P628.6 billion from P570.4 billion the same period last year.

On the other hand, overall government spending for August reached P404.5 billion, up 6.4 percent on a yearly basis.

Broken down, personnel services expenditures went up by 3.4 percent to P95.9 billion due to the implementation of the third tranche of the Salary Standardization Law, but   dampened by the release of allowance for healthcare workers and performance-based bonus of the Department of National Defense.

The government also recorded higher maintenance and other operating expenses to P75.4 billion amid payouts of various cash assistance to the Department of Social Welfare and Development and the Department of Agriculture.

This is also due to the release of cash allowance for teachers in preparation for the start of face-to-face classes.

Capital transfers to local government units soared almost 180 percent to P40.8 billion amid the timing of release of the special shares of LGUs in the proceeds of national taxes, specifically on tobacco excise tax.

Interest payments also increased by 28.6 percent to P30.8 billion due to the timing of coupon payments for global bonds.