Infra spending up 35.6% to keep growth momentum

The government increased its expenditures on infrastructure by 35.6 percent for the first five months of the year, disbursing P104.6 billion from PP77.1 billion last year.

The additional P27.5 billion spent resulted from a “deliberate and strategic” approach to ensure inclusive growth according to Budget Secretary Florencio Abad.

“Key to that is ensuring swift disbursements to high-impact sectors—such as public infrastructure and capital outlay—and other crucial industries that will deliver immediate benefits to Filipinos and allow us to sustain the country’s strong economic momentum,” the budget chief added.

Abad said that more than half of the amount spent for infrastructure and other CO was attributed to the P60 billion in payments made by the Department of Public Works and Highways to suppliers and contractors for various public infrastructure projects.

He said that disbursements made for projects under the Department of Transportation and Communication, as well as the construction of farm-to-market roads under the Department of Agriculture, contributed to the increase in infrastructure spending.

Abad also noted that spending for maintenance and other operating expenditures (MOOE) rose by 25.1 percent in the first five months of the year.

Disbursements for MOOE as of end-May went up to P120.2 billion, P24.2 billion higher than the P96.1 billion recorded in the same five month period last year.

Abad said that this amount includes releases for social welfare programs under the Department of Social Welfare and Development, the branding campaign program under the Department of Tourism, and expenses made to cover the 2013 National and Local Elections.

The budget chief said that he expects more focused and accelerated disbursements in the second half of the year.

 “We are working actively with our Account Management Teams in key implementing agencies to sustain and further improve the pace of disbursements, as well as to eliminate expenditure bottlenecks that might prevent our agencies from making the most of their fund releases,” Abad said.

Expenditures for personnel services likewise grew by 12.2 percent to P237.7 billion for the first five months of the year.

Abad said that this was mostly due to the annualized salary adjustments as a result of the implementation of the Salary Standardization Law III, as well as claims for retirement gratuity and terminal leave benefits.
Interest payments also went up by 5.9 percent to P138.7 billion, on account of interest payments to domestic borrowings, in addition to interests to bonds issued in the first quarter of the year.

source:  Malaya