Govt 2024 spending likely hit P5.9T goal vs P5.3T in 2023 — DBM  

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The Department of Budget and Management (DBM) estimates the government’s disbursement in 2024 hit its target of P5.9 trillion, up from P5.34 trillion the prior year, with a fourth quarter catch-up largely on infrastructure projects making up for a slowdown in spending in the first three quarters. 

DBM principal economist Joselito Basilio told reporters at the DBM office in Manila late last week last year’s spending performance was driven by a combination of factors, “mainly infrastructure, and then of course, social spending.”

The official figures are due for release on February 28  but if they align with these estimates, the government’s actual disbursement for 2024 would show a 10.5 percent increase from P5.34 trillion as the records for 2023 show.

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Infra utilization up

DBM Assistant Secretary Romeo Matthew Balanquit highlighted improved budget utilization for infrastructure projects by the Department of Public Works and Highways. 

“We’ve seen significant improvement in their utilization rate. You can see that they are boosting our last-quarter spending, really catching up as the year ends. Many projects are being completed toward the end of the year, which is why we see the utilization rate increasing,” Balanquit said in the same interview with reporters.

“Normally, when December comes, that’s when the national government’s spending significantly increases. To my recollection, for the first three quarters, we were even below the programmed spending. But we expect that we might still reach the target of P5.9 trillion by the end of December. It’s also possible that we could exceed that target,” he added.

Revenue backs spending

According to the Bureau of the Treasury’s latest cash operations report released late last year, the cumulative expenditure for January to November amounted to P5.28 trillion, representing a 12.96 percent increase, compared with P4.68 trillion recorded in the corresponding year-earlier period.

The government’s expenditure outlook for 2024 was higher than the initial National Expenditure Program of P5.77 trillion, based on the Budget of Expenditures and Sources of Financing for that fiscal year.

“During the year, we are also seeing additional revenues. So, with additional revenues, there is additional spending. Sometimes, these additional revenues trigger new spending from the unprogrammed appropriations, which result in additional disbursements,” Balanquit said.

“We’re making sure that spending is not done recklessly—it has to be backed by corresponding revenues that were not originally part of the revenue program. Otherwise, we will see an increase in the deficit and risk breaching the deficit target. As long as we know there are additional revenues, we can allow for some additional spending. What’s important is the deficit-to-GDP ratio, which is what we are closely monitoring,” he added.

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