STATE SPENDING in infraThe stock rose 16.9% in September driven by premiumscompleted transportation projects, said the Department of Budget and Management (DBM).
In the latest National Government Disbursement Report, infrastructure spending and other spending increased by P19.8 billion to P137.1 billion in September from P117.3 billion in the same month last year.
Month-on-month, infrastructure spending increased by 26.24% from P108.6 billion in August.
The DBM revealed that the September increase was due to the payment of the completed road and bridge projects of the Department of Public Works and Highways (DPWH).
More funds are also made in various programs of the Ministry of Transport that are assisted by foreign countries.
It also noted the spending on the needs of its domestic counterparts to implement Phase 1 of the Metro Manila Subway Project, the North-South Commuter Railway System, and the Davao Public Transport Modernization Project.
Funds were also used in the Department of National Defenses (DND) program of the Armed Forces of the Philippines, as well as the construction and renovation of halls of justice throughout the country and the implementation of the Department of Education’s computerization program.
In the January to September period, infrastructure spending increased by 14.6% to P982.4 billion from P857.6 billion in the same period in 2023.
“The robust spending growth of this period was mainly attributed to…infrastructure and other spending with significant payments recorded to the DPWH for its infrastructure projects and the DND for its defense development projects,” the DBM said.
Total infrastructure payments, which include transfers to local government units and subsidies to state-owned and controlled companies, rose 12% to P1.14 trillion at the end of September.
“This was equivalent to 6.1% of GDP (gross domestic product) compared to 5.9% for the same period last year and 5.6% for the full year this year,” he said.
Philip Arnold “Randy” P. Tuaño, The director of the Ateneo Public School, said that the increase in infrastructure costs may continue for a short period of time.
“(The increase was) due to the large balance from different sources of the budget that was found to be released, as well as the prioritization of major transportation projects such as the Metro Manila Subway,” said Mr. Tuaño e-mail at the weekend. .
He also expects an increase in infrastructure spending as there are five months left until the 2025 mid-term elections.
“It must first be noted that infrastructure spending has increased year by year, and this will increase according to the 2025 national budget,” said Terry L. Ridon, public investment analyst and organizer of InfraWatch PH, in a Viber message. . “This is the primary reason for improving spending this year.”
The government’s infrastructure program for this year is set at P1.472 trillion, equivalent to 5.6% of GDP.
Mr. Ridon urged infrastructure institutions to improve their absorption capacity “especially since 2025 is an election year when the law authorizes the suspension of project implementation for a certain period of time.”
“The challenges are that the level of maturity and innovation of our important structures, especially infrastructure and agriculture, has been very low,” said the former Secretary of the National Economic and Development Authority Cielito F. Habito, in a conference held at the University of the Philippines School. of Economics on Friday.
Mr. Habito pointed out that there were “questionable values” in the allocation and use of other sectors.
“We had a lot of budget, but it turned out that it will not be used at the time it was intended to be used,” he said in mixed English and Filipino.
“This is a very important issue in our overall fiscal policy. It is not so much monetary policy, but the implementation of monetary policies in that way.”
Mr. Habito also spoke about the DPWH’s tendency to “block” roads, calling it a “seemingly inappropriate allocation of the budget.”
He also said that the government needs many types of cooperation between the Government and the private sector given the lack of government funds. – Aubrey Rose A. Inosante
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