The government’s expenditures for infrastructure and other capital outlays posted a double-digit decline of 25.4 percent in August, data released by the Department of Budget and Management (DBM) showed.
According to data posted in the DBM’s website, infrastructure spending in August amounted to P44.3 billion, P15.1 billion lower than the P59.3 billion spent in the same period a year ago.
“Infrastructure and other capital outlays were lower than the previous year’s level by 25.4 percent owing mainly from the unintended delays in construction activities as a result of the rainy season and the implementation of the two-week modified enhanced community quarantine in the National Capital Region and nearby regions,” the DBM said.
Year to date, the government’s disbursements for infrastructure and capital outlays also posted an 11.5 percent drop, to P394.5 billion from the P445.9 billion posted in January to August 2019.
“Infrastructure spending was lower year-on-year due to the payment of prior years’ accounts payables in the same period last year, and the moderated implementation of construction activities as a result of the lockdowns and restrictions brought about by the pandemic,” the DBM said.
According to the DBM, expenses for infrastructure and other capital outlays will likely remain muted for the rest of the year with the discontinuance of some capital outlay projects which can no longer be implemented nor completed due to the pandemic, pursuant to the Bayanihan to Heal as One Act.
“Construction works have also been slowed down by the lockdowns for most of the second quarter, the restrictions following health and safety protocols, as well as the weather conditions in various parts of the country,” the DBM said.
“Nonetheless, both the Department of Public Works and Highways and Department of
Transportation remain committed to accelerate implementation and make most of the remaining months of the year to complete or partially complete priority projects,” it added.
The Bureau of the Treasury (BTr) earlier reported the national government’s budget deficit widened to P40.1 billion in August, amid a double-digit decline in revenues, due to the impact of the coronavirus pandemic.
The BTr said the budget shortfall in August is much wider compared to P2.5 billion a year ago.
“The fiscal outturn resulted from the 13.05 percent year-over-year decrease in government receipts due to the continued impact of the pandemic outbreak with minimal growth in government expenditures for the period,” the BTr said.
This drove the year-to-date deficit to P740.7 billion, surpassing last year’s shortfall for the same period of P120.4 billion. (A. Celis)
