The government’s expenditures for infrastructure posted a strong growth in April as it spent for the country’s coronavirus disease 2019 (COVID-19) response.
The Department of Budget and Management (DBM) said in a report posted on its website yesterday that spending for infrastructure and other capital outlays rose by 41.9 percent in April to P40.1 billion, from P28.3 billion a year ago.
The DBM attributed the increase to the construction of COVID-19 quarantine facilities and purchase of medical equipment of the Department of Health.
The agency also cited the acquisition of transport equipment under the Revised Armed Forces of the Philippines Modernization Program, and implementation of regular road infrastructure programs.
However, as of end-April, infrastructure spending was still lower by 4.9 percent to P196.2 billion, from the P206.4 billion posted a year ago.
The DBM said this is due to the base effect of high infrastructure expenditures in the same period last year brought about by the payment of prior years’ accounts payables, as well as the temporary suspension of construction activities due to the implementation of enhanced community quarantine (ECQ) measure in mid-March to April.
The DBM said spending for the rest of the second quarter is still expected to be mostly driven by COVID-19 related expenditures, specifically with the releases for the second tranche of the social amelioration program, and the small business wage subsidy program.
“Furthermore, the transition from the ECQ to general community quarantine and the new normal in some local government units, as well as the easing of restrictions on establishment operations and the construction sector… is a welcome development,” the DBM said.
“This should facilitate the resumption of construction activities of the Department of Public Works and Highways, and the Department of Transportation so they can speed up the implementation of public infrastructure projects, with the intention to catch up with the unintended delays during the ECQ,” it added