5,145 guests

Gov’t spending, infra outlays surge

The National government spent P261.7 billion in first five months this year, up 20.4 percent from expenditures in the same period last year.

This shows that policy reforms for more efficient project implementation have started to gain traction.

The encouraging data bodes well for the future prospects of government spending in 2017, ensuring the swift delivery of public goods and services to all Filipinos.

For fiscal year 2017, the General Appropriations Act (RA 10924) sets the National Budget at P3.35 trillion, equivalent to 21.1 percent of Gross Domestic Product.

Furthermore, Current Operating Expenditures was recorded at P200.6 billion, resulting in a 17.9 percent increase.
    
Noteworthy was the growth in maintenance spending, as Maintenance and Other Operating Expenditures increased by 34.0 percent, settling at P52 billion.
    
This was driven by the pay-out of cash grants to Pantawid Pamilyang Pilipino Program beneficiaries, the grant of operating requirements and allowances to teachers of the Department of Education, and the expenses incurred in preparation for the ASEAN Summit.
    
The increase also reflected payments that should have been made in April but spilled over in May, given the numerous holidays in April.
    
Personnel Services registered at P89.7 billion, or an 18.5 percent increase, primarily due to the release of P32.6 billion for the mid-year bonus of government employees.
    
As per the second tranche implementation of the Compensation Adjustment of 2016, government employees are entitled to a mid-year bonus equivalent to one month’s salary.
    
Meanwhile, Capital Outlays amounted to P60.9 billion, or an increase of 29.1 percent. The boost was driven by the surge in Infrastructure and Other Capital Outlays spending, which expanded by 31.4 percent, reaching P46.2 billion.
    
This was primarily a result of completed road construction, repair and rehabilitation, and flood control infrastructure projects implemented by the Department of Public Works and Highways.