National government spending gained headway in its catch-up plan for the year as disbursements posted double-digit growth in September, according to the Department of Budget and Management (DBM).
In a statement on Thursday, DBM said government spending reached P415.1 billion in September, a 39-percent or P116.5-billion increase from P298.6 billion posted last year.
This brought the January -to-September period spending to P2.627 billion in 2019, a 5.5-percent growth from P2.49 billion. This is 2.1 percent below target for the period.
“[We are] optimistic that the national government will be able to meet its catch-up spending program before the end of the fiscal year in support of the administration’s growth targets,” the DBM said.
Data showed the growth of government disbursements this September was mainly driven by an upsurge in disbursements in Capital Outlays, particularly in Infrastructure/Other CO spending.
Infrastructure/Other CO spending reached P100.3 billion this September. This was a 53.9-percent growth, or an increase of P35.1 billion, from last year’s P65.2 billion.
DBM said this was the fastest growth in Capital Outlay for the year, and was mainly due to the completion of projects of the Department of Public Works and Highways (DPWH).
These projects include the construction, upgrading, repair, and rehabilitation of roads, bridges, and flood-control structures.
The government also completed the purchase of new military equipment under the Revised Armed Forces of the Philippines Modernization Program of the Department of National Defense, and constructed the new Supreme Court building for the Judiciary.
“[This indicated] the government has broken through the effects of the delayed passage of the FY 2019 national budget and the election ban on infrastructure spending which weighed down on economic growth during the first half of the fiscal year,” DBM said.
Other drivers of growth in national government spending include increases in subsidies to government-owned and -controlled corporations which posted a 179.3-percent growth and Maintenance and Other Operating Expenses with a growth of 26.1 percent.
The list includes Personnel Services expenditures which posted a growth of 15 percent, and combined allotment and capital transfers to local government units, growing at 27 percent.