THE government missed its infrastructure spending target for the first semester, largely due to the four-month delay in the passage of the national budget, according to data from the Department of Budget and Management (DBM).
Data from the DBM showed that actual infrastructure spending reached only P311.4 billion, P81.5 billion lower than the P392.9 billion programmed for the January-to-June period.
Total disbursements for the period, which include current operating expenditures, capital outlays and net landing, reached only P1.59 trillion. This is P125.8 billion lower than the goal of P1.716 trillion for the first half.
“This is largely due to the delayed implementation of various infrastructure projects following the late approval of the FY 2019 General Appropriations Act and the election ban,” the DBM said in a statement.
Infrastructure spending in the first semester was down by an annualized rate of 11.7 percent, or P41.3 billion, compared to last year’s actual program. Disbursements for infrastructure last year reached P352.7 billion.
For June alone, infrastructure spending fell by nearly 40 percent to P43.5 billion, from the P71.9 billion recorded in the same month last year.
The national government was forced to operate on a reenacted budget for months as the passage of the 2019 national budget was delayed due to a number of issues, including disagreements among lawmakers over last-minute insertions and realignments.
The President was only able to sign the proposed 2019 General Appropriations Act on April 15.
Due to the budget impasse, new and continuing infrastructure projects were stalled earlier in the year, when weather conditions improved. Construction was also affected by the election ban from March 9 to May 12.
The delay in the passage of the budget was cited as the biggest reason for the slower GDP growth of 5.6 percent for the first quarter. The figure is lower than the 6.5 percent recorded last year.
Moving forward, the DBM said it expects the bulk of disbursements, especially for infrastructure and capital outlays, to be made in the second semester.
“For instance, the Department of Public Works and Highways anticipates that their spending will pick up in the third quarter and peak in the fourth, barring any other significant delays, such as weather disturbances and other implementation bottlenecks,” it said.
The DBM said it continues to monitor implementing agencies that committed to ramp up their spending in the second half of the year. The government has been banking on higher infrastructure spending to hit its growth target of 6 percent to 7 percent for 2019.
Image credits: Nonoy Lacza