The national government reported a 20-percent increase in state spending in May totaling P261.7 billion. This, the Department of Finance said on Monday, shows that policy reforms for more efficient project implementation have started to gain traction.
The encouraging data, it said, bodes well for prospective government spending this year, and helps seal the swift delivery of public goods and services to all Filipinos. For fiscal year (FY) 2017, the General Appropriations Act (RA 10924) sets the national budget at P3.35 trillion, equivalent to 21.1 percent of GDP.
Furthermore, current operating expenditures were recorded at P200.6 billion, resulting to a 17.9-percent increase. Noteworthy was the growth in maintenance spending, as maintenance and other operating expenditures increased by 34 percent, settling at P52 billion. This was driven by the payout 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 reflects 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 midyear bonus of government employees. As per the second tranche implementation of the compensation adjustment of 2016, government employees are entitled to a midyear 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 is primarily a result of completed road construction, repair and rehabilitation and flood-control infrastructure projects implemented by the Department of Public Works of Highway.
Some of these projects include the Impalutao—Dalwangan Road Section in Bukidnon, the Calintaan-Sablayan Road Section in Occidental Mindoro and the Pasig-Marikina River Channel Improvement Project (Phase III).
The growth in infrastructure spending is a positive sign that the “Build, Build, Build” agenda of the Duterte administration is gaining headway. Infrastructure development is an integral aspect of the 10-Point Socioeconomic Agenda of President Duterte, as well as a crucial strategy under the Philippine Development Plan of 2017–2022. Infrastructure is envisioned to drive economic growth, generate jobs, improve connectivity and create economic opportunities for Filipinos across all regions.
It will support the government’s objectives of rapid and inclusive growth in the medium term, which will drive the Philippine economy to upper middle-income status by 2022 and reduce poverty to 14 percent, from 21.6 percent in 2015.
The government intends to spend P8 trillion to P9 trillion for public infrastructure in the next six years. For FY 2017, P847.2 billion is allocated for infrastructure, or 5.3 percent of GDP.
Meanwhile, the preliminary infrastructure budget for the FY 2018 budget is at P1 trillion, or 5.8 percent of GDP.
Infrastructure spending will gradually rise from 5.3 percent in 2017 to 7.3 percent of GDP
by 2022.