Budget and Management Secretary Florencio B. Abad today announced that national government disbursements reached P108.5 billion in February and increased by 6.9 percent compared to the spending in the same month of last year.
He said that expenditures net of interest payments in February increased year on year by a faster rate of 10.8 percent or P8.6 billion to P88.0 billion. This was largely due to large increases in maintenance expenditures (MOOE) as well as infrastructure and capital outlays (CO), by 33.4 percent or P3.47 billion and by 84.7 percent or P5.35 billion, respectively.
However, the growth of total February expenditures was tempered by the 7.1-percent or P1.58-billion decrease in interest payments (IPs), as well as the reduction in transfers to local government units (LGUs) and government-owned or -controlled corporations (GOCCs).
The economic manager also said that revenues for the month increased by 49 percent or P39.2 billion due to unprecedented increases in Internal Revenue collections (28.6 percent), Customs collections (20.7 percent) and Treasury income (668 percent).
“Contrary to our expectations, we had a P10.66-billion fiscal surplus in February because of groundbreaking increases in revenue collections. But on the expenditure side, agencies’ commitment to perform better and faster boosted maintenance and capital expenditures, the areas that matter most to our economy,” he said.
Disbursements as of February reached P250.8 billion, which is 12.0 percent higher year-on-year and equivalent to 13.6 percent of the full-year disbursement outlook for 2012 as approved by the Development Budget Coordination Committee. MOOE and infrastructure and other CO in the first two months grew by 26.3 percent and 36.0 percent, respectively
Highlights of 2012 Disbursements as of February
o Maintenance and Other Operating Expenditures (MOOE) were primarily boosted by the fleshing-out of lump sum funds for key programs in the 2012 National Budget, which enabled the early release of allotments and cash allocations for these programs. The increase in coverage of the Pantawid Pamilyang Pilipino Program (4Ps) also contributed to the upbeat performance in MOOE.
o Infrastructure and Other Capital Outlays gained speed due to the higher volume of settled accounts payables, both current and carried-over from the previous year. In particular, advanced procurement processing for Public Works projects, even before the 2012 National Budget was passed, contributed to faster infrastructure spending. The detailing of specific projects in the 2012 National Budget, such as those for irrigation, also helped boosted spending on infrastructure projects which were historically delayed to as late as the second half under the lump sum fund system.
o Personal Services (PS) in February increased mainly due to the implementation of the third tranche of the Salary Standardization Law III. The increase also accounts for the fact that the Department of Budget and Management (DBM) withheld 20 percent of the salary provisions for the military, police and other uniformed personnel early last year pending the submission of their complete rosters.
o Allocations and Capital Transfers to Local Governments (LGUs) in the first two months of the year decreased by 8.1 percent or P4.05 billion to P45.7 billion. This resulted from lower Internal Revenue Allotment (IRA) of LGUs due to decreased revenues in 2009, as well as lower cash requirements for prior years’ unfunded allotments for the special shares of LGUs in the Tobacco Excise Tax.
o Subsidies and Equity to Government Corporations (GOCCs) decreased by 77.3 percent or P3.34 billion to P1 billion in the two-month period. This is due to lower cash requirements for prior years’ payables. The higher disbursements to GOCCs early last year was also due to releases to the National Power Corp. Small Power Utilities Group (SPUG) to avert blackouts in SPUG areas.
o Tax Expenditures (TEF) slowed down by 74.6 percent or P1.3 billion in January and February, primarily due to the decreased volume of government securities issued, which decreased expenses incurred for the documentary stamp tax by P1.5 billion or 85.9 percent. This was tempered by the slight increase in tax expenditures of the Bureau of Customs for importations made by government agencies and GOCCs.
o Interest Payments (IPs) in the first two months of increased by P12.9 billion or 22.2 percent to P70.9 billion due to the large increase in IPs in January which was tempered by the decrease in February. This is primarily due to the higher volume of outstanding treasury bonds as of December 2011 that was settled in January.