The national governmentӼs expenditures for infrastructure and other capital outlays in 2019 exceeded program by 2.6 percent, following the implementation of a catch-up spending plan in the latter part of the year to counter the impact of the delayed passage of the 2019 budget coupled with the election ban.
Data posted by the Department of Budget and Management (DBM) on its website showed that infrastructure spending skyrocketed to P881.7 billion in 2019, outperforming the P859.4 billion program by P22.3 billion, and the previous year’s level of P803.6 billion by 9.7 percent.
«Notwithstanding the contraction recorded in the first two quarters due to the delayed budget approval and the election ban, infrastructure spending ended with a positive growth rate as a result of the implementation of catch-up measures such as the 24/7 work schedule for construction of major infrastructure projects; and streamlining of process to expedite right-of-way acquisitions and facilitate payments,» the DBM said.
The agency also cited the completed or partially completed segments of the big-ticket projects of the Departments of Public Works and Highways, of Transportation, and of National Defense, as well as other agencies, for the increase in infrastructure spending.
These projects include the Central Luzon Link Expressway Phase 1, Cavite-Laguna Expressway, Tarlac-Pangasinan-La Union Expressway, and Flood Risk Management Project for the Cagayan River.
Also included are the Metro Manila Subway Project, North-South Commuter Railway Project, rehabilitation of the Metro Rail Transit 3, and the Armed Forces of the Philippines Modernization Program.
When the infrastructure component of subsidy and equity to government-owned and -controlled corporations, as well as the transfers to local government units intended for infrastructure projects are taken into account, the DBM said the total infrastructure disbursements for 2019 reached P1.05 trillion.
This is up by 18.4 percent year-on-year and equivalent to 5.6 percent of gross domestic product (GDP).
«This compares to the 5.2 percent of GDP target in 2019,» the DBM said.
The government earlier reported total full-year disbursements reached P3.8 trillion, 0.74 percent or P28.1 billion higher than the target of P3.77 trillion.
It is also 11.42 percent up versus last yearӼs P3.41 trillion.
The DBM said the government will continue to accelerate public spending this year, particularly infrastructure outlays and social sector banner programs, to help support economic growth amidst the downside risks from the eruption of the Taal Volcano, the coronavirus disease outbreak, and weak global demand.
«Nonetheless, the government will remain prudent with public expenditures to ensure long-term fiscal sustainability,» the agency said.
