The government’s disbursements for infrastructure and other capital outlays rose by 2.1 percent in May versus its year ago level, data released by the Department of Budget and Management (DBM) showed.
According to the DBM, infrastructure spending stood at P80.5 billion in May, up P1.7 billion from the P78.9 billion recorded a year ago.
“This is mostly accounted by the increase in CRC (constructive receipts of cash) payments of the Department of Transportation for the Malolos-Clark Railway Project and the Metro Manila Subway Project-Phase I and capital outlay projects under the Armed Forces of the Philippines Modernization Program, which partly offset the lower disbursements recorded in the Department of Public Works and Highways due to the election ban, as well as other one-off capital expenditures (e.g., construction of Senate building),” the DBM said.
CRC payments are direct payments made to suppliers by development partners for the implementation of foreign-assisted projects.
Year-to-date, infrastructure spending inched up 0.7 percent to P334.6 billion from the P332.3 billion disbursed in the first five months of 2021.
The national government’s total spending in May 2022, on the other hand, declined to P451.7 billion, marginally below the previous year’s level of P456.7 billion by 1.1 percent.
“This is mainly on account of the timing of the P36.5 billion subsidy to the Philippine Health Insurance Corp. for the payment of health insurance premiums of senior citizens in May 2021,” the DBM said.
“In addition, capital transfers to local government units (LGUs) declined year-on-year due to lower releases from the Local Government Support Fund, specifically the Support to the Barangay Development Program to the National Task Force to End Local Communist Armed Conflict, and from the Special Shares of LGUs from the proceeds of national taxes, particularly the tobacco excise tax,” it added.
Meanwhile, national government disbursements as of end-May 2022 registered at P1.9 trillion, 4.7 percent more year-on-year.
The DBM said allotment and capital transfers to LGUs led the drivers of spending for the period, which increased by 17.7 percent when combined.
“Disbursements for June 2022 are expected to rebound from the slight contraction recorded in May as the prohibition on public works and certain type of disbursements during the election period has ended,” the DBM said.
“Based on preliminary report using data on negotiated checks, spending in June likely grew by at least 20 percent year-on-year, driven by subsidy releases, growth of national tax allotment and faster capital outlay disbursements,” it added.
