Infra, capital spending climbs 38.6% in June
Total disbursements ‘ahead of program for the first time in history’
Government spending on infrastructure and other capital outlays jumped 38.6 percent to P72 billion in June, Budget department data showed on Wednesday, bringing year-to-date disbursements past that programmed for the period.
Budget Secretary Benjamin Diokno PHOTO BY BOB DUNGO JR.
The month’s total was P20 billion more than a year earlier and brought the six-month tally to P352.7 billion, up 41.6 percent year on year and P14.4 billion more than the programmed P338.3 billion.
“This is attributed to infrastructure projects of various agencies, especially the road infrastructure projects of the Department of Public Works and Highways,” the Budget department said in a statement.
“Specific to June 2018, these projects include the construction, widening, upgrading and preventive maintenance of road networks nationwide under the DPWH; the repair and rehabilitation of classrooms and school facilities under the Department of Education and state universities and colleges; acquisition of hospital and medical equipment of the Department of Health; and rail transport projects and purchase of airport security equipment of the Department of Transportation,” it added.
Infrastructure and other capital outlays accounted for about a quarter of government disbursements, which hit P278.5 billion in June, 2.9 percent higher year on year.
Year to date, total disbursements rose to 1.603.6 billion, up 20.5 percent and also P34.4 billion more than programmed.
“The performance of government spending is unprecedented, because we are ahead of the program for the first time in history,” Budget Secretary Benjamin Diokno said.
“This is the result of the reforms we have implemented in planning and budgeting,” he added.
Next to infrastructure and capital outlays, the government spent the most on personnel services, disbursements for which totaled P74.8 billion or 11.4 percent higher in June.
This was attributed to the “filling of positions in various government agencies, the release of retirement and gratuity benefits, and the release of pensions” of police and armed forces retirees.
Year to date, spending on this item hit P460.5 billion, 20.1 percent higher year on year and P24.5 billion more than programmed.
While disbursements exceeded program, the Budget department said robust revenue collections allowed the government to stay below its deficit cap.
As of end-June, revenue collections totaled P1.411 trillion, also exceeding the programmed P1.305 trillion and attributed to the implementation of the Tax Reform for Acceleration and Inclusion (Train) law, improved tax and customs collections and higher remittances by state-owned firms.
This resulted in a first-half budget deficit of P193 billion, below the P264.3 billion targeted for the period.
“With the better-than-programmed figures on revenues, spending and the fiscal deficit, we will continue to spend wisely and promptly to service the huge needs of our people,” Diokno claimed.
The post Infra, capital spending climbs 38.6% in June appeared first on The Manila Times Online.