Gov’t spending on infra up 26% in May —DBM

Government spending on infrastructure grew in double-digit terms in May under the administration’s “Build, Build, Build” program, the Department of Budget and Management (DBM) said Wednesday.

Data released by the DBM showed that spending on infrastructure development reached P58.1 billion last month, up 26 percent from P46.2 billion a year earlier.

Infrastructure spending in the five months to May reached P280.8 billion, up 42.4 percent from P197.2 billion in the same comparable period.

“We continue to make strides in the fiscal sector of the economy and this is confirmed by the spending data,” Budget Secretary Benjamin Diokno said during a breakfast forum in Manila.

“This should translate to better outcomes in the real economy, that is—more jobs for our people, improved standards of living and robust economic activity,” he said.

President Rodrigo Duterte is batting for swifter implementation of the infrastructure program, according to Malacañang on Tuesday.

Diokno did not comment on the Palace statement and turned to what the data showed. “Numbers don’t lie.”

The Department of Public Works and Highways (DPWH) should brief the President about the status of the projects, he said.

The surge in infrastructure spending and other capital outlays was a result of various infrastructure completed by the DPWH, including roads and bridges and flood control projects, Diokno said.

Repair and rehabilitation of school buildings by the Department of Education, and the acquisition of medical equipment and facilities under the Health Facilities and Enhancement Program of the Department of Health also contributed to infrastructure spending, he said.

Disbursements for personnel services totaled P107.3 billion, up 20 percent from P89.7 billion, mainly due to the mid-year bonus of government employees, higher salaries of civilian government employees under the third tranche of the salary standardization program, and higher compensation for military and uniformed personnel.

The combined cumulative government spending stood at P292 billion in May, up 12 percent from P261.7 billion a year earlier.

This brought fiscal spending in the first five months of the year to P1.325 trillion, up 25 percent from P1.050 trillion.

“We are confident that we will hit our second quarter disbursement targets,” Diokno said.

“In fact, actual disbursement in the first quarter exceeded the program. So it’s justified to anticipate good results in the second quarter,” he said.

The second quarter disbursement target under the 2018 Quarterly Fiscal Program is P813 billion. Fiscal spending in April and May has reached P553 billion, according to the DBM. —VDS, GMA News