The national government’s disbursements for infrastructure and other capital outlays fell below program in the first half of the year as it cited the election ban as the reason for the shortfall in spending.
According to documents posted on the Department of Budget and Management’s (DBM) website over the weekend, infrastructure spending in the first half of the year amounted to P477.9 billion, 9.7 percent below the program of P529.3 billion.
It, however, rose by 12 percent from the year ago level of P426.7 billion.
The DBM said the below-program disbursements was mainly attributed to the election ban on certain government spending and public works from March 25 to May 8, 2022, in relation to the conduct of the May 2022 national and local elections.
“Per the Omnibus Election Code, the release, disbursement or expenditure of public funds, as well as the construction of public works and delivery of materials for public works during the period of 45 days preceding a regular election are prohibited. Some activities, such as the maintenance of existing and/or complete public works, works whose contracts are awarded prior the election ban and emergency restoration works due to calamities are exempted,” the DBM said.
“Other priority programs/projects of implementing agencies can be exempted as authorized by the Commission on Elections (Comelec) after due notice and hearing. However, specific listing of programs/projects must be covered by the Comelec Certificate of Exemption,” it added.
Meanwhile, for the year-on-year increase, the DBM cited the payments made for completed and partially completed infrastructure projects of the Department of Public Works and Highways (DPWH), the settlement of accounts payables of the Department of Agriculture for the procurement of farm equipment and machineries under the Rice Competitiveness Enhancement Fund and the Department of Education for its Basic Education Facilities, and the implementation of capital outlay projects under the Revised Armed Forces of the Philippines Modernization Program (RAFPMP).
In June alone, infrastructure and other capital outlays reached P143.4 billion, higher by 51.9 percent than last year’s P94.4 billion.
The DBM said this was credited to the substantial disbursements of the DPWH for its completed infrastructure projects after the lifting of the election ban in May, capital outlay projects under the RAFPMP and payables of the Department of Transportation for the Philippine government component of its foreign-assisted projects, such as the North-South Commuter Railway and the Metro Manila Subway. – Angela Celis
