INFRASTRUCTURE spending for January to November recorded an almost 50-percent increase to P728.1 billion compared to the same period last year.
The Department of Budget and Management reported on Thursday that 11-month infrastructure spending this year went up by P241.6 billion from P486.5 billion a year ago.
Meanwhile, infrastructure and capital outlays — one of the main drivers of spending growth — also registered solid numbers, hitting P62.9 billion for November 2018 alone.
It grew by 44 percent or P19.1 billion from the levels recorded in the same month last year.
This is on the back of completed road infrastructure projects by the Department of Public Works and Highways, repair and rehabilitation of school buildings and facilities of the Department of Education and State Universities and Colleges, and acquisition of medical equipment of the Department of Health.
For January to November 2018, spending on Personnel Services also jumped by P168 billion or 23 percent year-on-year, reaching a total of P884.7 billion.
The increase is primarily driven by higher salaries for both civilian government employees and military and uniformed personnel, alongside the faster rate of filing of positions by various line agencies.
In November 2018, Personnel Services also went up by P24.7 billion or 25 percent, owing to the release of yearend bonuses, equivalent to one-month basic salary for both uniformed and civilian government employees; the creation and filing of positions in the Department of Education, Philippine National Police and the Department of Health and the release of pension, retirement and gratuity benefits in various agencies.
Budget Secretary Benjamin E. Diokno said in a statement that he is optimistic about the full-year 2018 spending outturn.
“Public spending remains robust as we’ve managed to channel more resources to the government’s priorities,” he added. “The 2018 full-year numbers, including the assessment of national government disbursements, should be out by the first quarter of 2019,” he said.
“We have an expansionary fiscal policy so we can upgrade our public infrastructure, as well as provide our people with quality and accessible healthcare, education, and poverty-reduction programs. With the pace of public spending, it is clear that the government is following through with its ambitious plans, especially Build Build Build,” he added.
However, the government’s fiscal deficit nearly doubled due largely to accelerated spending for infrastructure projects under the Build, Build, Build program.
In the 11-month period, the government ran a fiscal deficit of P477.2 billion, up by 96 percent from the P243.5 billion recorded last year. The January to November deficit was 91 percent of the government’s full -year target of P523.7 billion.
In November alone, the national government incurred a budget deficit of P39.1 billion, significantly larger than the P8.6 billion recorded in the same month last year.
The Department of Finance has said the widening of the fiscal gap was “not surprising,” given the government’s goal of rolling out of more infrastructure projects and increasing its investments in human capital.
National government disbursements also reached P298.8 billion in November 2018, up by P46.7 billion or 19 percent year-on-year. This puts spending for the 11-month period at P3.095 trillion, higher by P601.7 billion or 24 percent compared to the same period in 2017.
Image credits: Nonie Reyes