The government’s disbursements for infrastructure and other capital outlays posted a double-digit decline in the first two months of the year, according to the Department of Budget and Management (DBM).
Data posted on the DBM website yesterday showed infrastructure spending declined by 16.3 percent to P90 billion from the P107.4 billion recorded a year ago.
“Infrastructure and other capital outlays decreased by P17.5 billion attributed mainly to the timing of payables for completed projects of the Department of Agriculture, ongoing road infrastructure projects of the Department of Public Works and Highways, foreign-funded rail transport projects of the Department of Transportation and releases for the Revised Armed Forces of the Philippines Modernization Program,” the DBM said.
Total government disbursements as of end-February 2022 amounted to P619.7 billion, slightly above the P610.3 billion for the same period a year ago.
The DBM said total spending for the two-month period which inched up 1.5 percent was mainly driven by higher allotment to local government units, personnel services expenditures and interest payments.
The budget agency meanwhile said spending likely improved in March as line agencies are expected to utilize their remaining cash allocations that have been fully credited during the quarter, since the same will lapse on the last working day of the month.
“However, for the second quarter of the year, the prohibition on public spending for infrastructure and other projects as mandated by the Omnibus Election Code might temporarily affect the implementation of some programs and projects, and hence could likely result in muted disbursements during the 45-day election ban period,” the DBM said.
Nevertheless, the Commission on Elections has granted the petition of some agencies for their respective programs to be exempted from the said ban.
