PH gov't 2023 expenditures exceeded target by 2.1% — DBM

The national government’s total expenditures in 2023 has surpassed target and outpaced the spending seen in the prior year, the Department of Budget and Management (DBM) said Wednesday.

Citing the Bureau of the Treasury’s Cash Operation Report, the DBM said the government’s expenditures last year amounted to P5.336 trillion.

This was higher by P176.6 billion or 3.4% than the P5.160 trillion expenditures in 2022 and also exceeded the target by P107.8 billion or 2.1%.

The year-on-year increase in government spending in 2023 was primarily driven by expansion in infrastructure and other capital outlays that reached P1.2 trillion, up 18.7% from a year earlier and 16.2% above target.

The DBM said the infrastructure and capital outlays spending was mainly credited to the accelerated program implementation and fund mobilization of the Department of Public Works and Highways and the Department of Transportation during the last two quarters.

This was also supported by the direct payments made by development partners for the implementation of foreign-assisted rail projects of the DOTr, the Budget Department added.

The DBM added that spending for current operating expenditures, such as Personnel Services and Maintenance and Other Operating Expenses :improved on the back of catch-up spending of major social departments.”

Meanwhile, subsidy to government corporations was 18.4% lower year-on-year and 23.8% below the program, largely on account of the calibrated releases to the PhilHealth considering its favorable financial position and substantial cash holdings, according to the Budget Department.

The Philippine government closed 2023 with a narrower budget deficit of P1.512 trillion, down 6.32% from P1.614 trillion in 2022.

This came after the growth in revenues exceeded that of expenditures. In particular, state collections stood at P3.545 trillion, up 7.86% while expenditures grew by 3.42% year-on-year. — RSJ, GMA Integrated News