THE government’s expenditures for infrastructure and other capital outlays fell below program by 18.3 percent in the first quarter, due to the implementation of the enhanced community quarantine (ECQ) during the latter part of March, among other factors.
The Department of Budget and Management (DBM) said in a document posted in its website late Monday the infrastructure spending amounted to P156.1 billion in the first three months of the year, P35 billion below the P191.1 billion program.
“(This was) mainly (due) from the combined effects of the delays experienced during the ECQ, pending submissions of budget requests and documentary requirements for the release of for later release capital outlays, as well as the late/incomplete submission of documentary requirements to facilitate release of funds/payments,” the DBM said.
Expenditures for infrastructure as of end-March also declined by 12.4 percent from the first quarter of the previous year’s level of P178.1 billion.
“Infrastructure and other capital outlays were down to P156.1 billion or P22.1 billion lower year-on-year which is mainly attributed to the base effect of high infrastructure expenditures in the same period last year brought about by the payment of prior years’ accounts payables, and the temporary suspension of construction activities due to the ECQ,” the DBM said.
In March alone, infrastructure spending totaled to P62.2 billion, 4.1 percent up from the P59.7 billion spent in the same month last year.
“Infrastructure and other capital expenditures (inched) up by P2.5 billion from the level a year ago with the payment of right-of-way acquisitions for the LRT (Light Rail Transit) Cavite Extension and the Metro Manila Subway Project of the Department of Transportation, as well as higher constructive cash receipt payments,” the DBM said.
“The increase in capital expenditures (however) was dampened by lower Department of Public Works and Highways disbursements following the unintended delays in the implementation of some infrastructure projects due to restrictions imposed during the Luzon-wide ECQ starting in early March this year to control the spread of COVID-19 (coronavirus disease 2019),” it added.
The Bureau of the Treasury earlier reported that total cumulative expenditures as of end-March reached P849.5 billion, achieving a 9.16 percent increase from last year’s P778 billion, but still short of the P993 billion program by 14.48 percent.
In March alone disbursements still posted a growth of 15.97 percent to reach P333.2 billion, versus the P287.3 billion a year ago.
The DBM said as of end-March 2020, the program balance from the P4.1 trillion obligation program amounts to P883.7 billion or 21.6 percent.
“Releases from the remaining program are expected to be substantially higher this second quarter to cover the requirements of COVID-19 health and recovery measures of the government which will be funded from realignments and savings pursuant to Republic Act No. 11469 or the Bayanihan to Heal as One Act enacted on March 24, 2020,” the DBM said.
The DBM said while these expenditures are seen to significantly drive disbursements for the next quarter, other ongoing programs and infrastructure activities will continue to face unintended delays during the period, which may gradually restart once the ECQ is lifted.
“The lower-than-programmed spending performance during the first three months of the year is, thus, expected to be offset in the second quarter with the reprioritization, reprogramming, and realignments of existing programs, activities, and projects of the government and measures to generate savings to finance COVID-19 emergency response pursuant to the Bayanihan to Heal as One Act,” the DBM said.
