STATE infrastructure spending declined as of end-November, still due to the more than four-month delay of the 2019 budget, as well as the election ban.
Data from the Department of Budget and Management (DBM) showed that infrastructure spending for the January-to-November 2019 period was recorded at P709.4 billion, recording a 2.6-percent contraction equivalent to 18.7 billion compared to the P728.1 billion posted in the same period in 2018.
While the total national government disbursements as of end-November increased by 6.7 percent to P3.303 trillion, from P3.0952 trillion on the same period in 2018, the DBM said the lower disbursements in infrastructure and other capital outlays, equity and capital transfers to local government units also weakened the increase in several expense items.
“However, it is worthy to note that the disbursement performance in November narrowed down the contraction recorded in infrastructure and other capital outlays to P18.7 billion (2.6 percent) as of end-November, from P36.7 billion (5.5 percent) during the first 10 months of 2019,” the DBM said in its assessment of the national government disbursement performance.
The increase in total government disbursements for end-November 2019 was credited to higher Personnel Services Costs, maintenance spending mainly for social protection programs and operating expenses, and subsidy contribution to government-owned and -controlled corporations.
Other growth drivers include allotment to local government units, interest payments, tax expenditures on account of payment of customs duties to the National Food Authority on rice importation, as well as net lending due to advances to the NFA for payment of its maturing obligations.
Nonetheless, the DBM said full-year disbursements for 2019 could likely “rebound by a double-digit growth,” citing preliminary data indicating that disbursements for December 2019 likely grew by around 50-percent year-on-year.
The government is also optimistic that it will achieve its spending target for 2019 as line agencies continue to speedup project implementation.
Meanwhile, infrastructure spending for November 2019 posted a double-digit growth of 28.6 percent or P18 billion to reach P80.9 billion compared to P62.9 billion recorded in the same month in 2018.
This was attributed to the payment for completed and partially completed infrastructure projects of the Department of Public Works and Highways, and the Department of Transportation, as well as its disbursements for payment of right-of-way acquisitions and the construction of buildings of the Land Transportation Office and the Land Transportation Franchising and Regulatory Board.
Moreover, some P1.4 billion was also released to the Department of Agriculture for the implementation of the Agricultural Competitiveness Enhancement Fund (Acef) Lending Assistance for Small Farmers and Fisherfolks intended for purchase of farm equipment, farm improvement, and acquisition/establishment of agricultural facilities.
Aside from the infrastructure spending, other major expense classes, such as Personnel Services, Maintenance and Other Operating Expenses also contributed to the overall 22.4-percent growth in government spending for November 2019 as it reached P365.6 billion.