• END-APRIL INFRA SPENDING SURGES TO 24.5% Y-O-Y

    Posted on June 30, 2014 by in News

    Government spending for infrastructure and capital outlay (CO) rose to P93.7 billion as of April—a 24.5-percent growth from last year’s P75.2-billion level—as the Aquino Administration extends its cumulative double-digit expansion for infrastructure disbursements year-on-year.

    Budget Secretary Florencio “Butch” Abad reported that notable infrastructure disbursements in April were channeled mostly to ongoing reconstruction and rehabilitation efforts in communities devastated by super typhoon Yolanda.

    “Our infrastructure spending is still going at a faster clip year-on-year. Although post-Yolanda reconstruction activities have played a major role in our infrastructure disbursements, the upsurge is also on account of the Aquino administration’s stronger focus on strengthening the economy through infrastructure and capital outlay investments,” Budget Secretary Florencio “Butch” Abad said.

    “Our campaign to ‘build back better’ for Yolanda-hit areas requires the introduction of better standards in the recovery and reconstruction process. We aren’t merely preoccupied with restoring damaged structures. We’re also determined to rebuild public infrastructure—such as schools and hospitals—so they’re more disaster-resistant,” he added.

    The reported infrastructure spending performance propelled overall government disbursements to P626.1 billion—an increase of P42.1 billion or 7.2 percent from 2013’s P584 billion—as of end-April this year.

    Abad also noted the government’s higher disbursements to support local government units (LGUs), where total capital transfers topped at P113.9 billion as of April, up by 12.3 percent from the P101.4 billion recorded in the same period last year.

    Meanwhile, interest payments from January to April—which amounted to P116.5 billion—have slowed down by P5.5 billion or 4.5 percent compared to figures posted as of end-April in 2013.

    “We’re directing more funds to our local governments to help them with their capacity-building initiatives. As our LGUs become more and efficient, their constituents can likewise look forward to the improved delivery of public services. This is one of the many ways through which better government spending can create a direct and substantial impact on the lives of citizens,” Abad said.

    “It’s also worth mentioning that our disbursements for interest payments have gone down for the first four months of the year. This essentially means that debt payments are taking up less space in government spending, so that we can devote more funds towards the Administration’s priority programs and projects,” he added.

    Abad also expressed optimism on the government’s disbursement performance over the coming months, as the Administration continues to pursue budget reforms that will help speed up expenditures and boost the economy.

    “While there is a cumulative increase in total government spending, we expect disbursements on other major expenditure items to pick up in the coming months. With the help of the agencies’ respective account management teams (AMTs), we’ve been able to identify bottlenecks that hold back spending. We have already spotted issues on planning and procurement, and we’re addressing these as quickly as possible,” Abad added.

    “We will of course maintain our spending momentum for infrastructure projects, as well as for other socio-economic programs at the heart of our bid for inclusive growth,” he emphasized.

     

    Disbursements by Expense Class, 2013 vs. 2014
    in billion pesos, unless otherwise indicated 

    Particulars

    As of April

    Increase/Decrease

    2013

    2014

    Amount

    %

    Current Oper. Exp.

    495.3

    503.8

     8.5

      1.7

      PS

       177.7

       186.5

        8.8

        5.0

      MOOE

         97.9

         97.6

         (0.3)

         (0.3)

      Subsidy

          5.2

          1.5

          (3.8)

         (71.7)

      Allotment to LGUs

         80.6

         91.1

         10.5

         13.0

      IP

       122.0

       116.5

       (5.5)

       (4.5)

      TEF

          11.8

          10.5

          (1.2)

         (10.4)

    Capital Outlays

      96.2

      116.7

       20.5

       21.3  

      Infra & Other CO

          75.2

          93.7

          18.4

    24.5

      Equity

           0.2

           0.3

          (0.0)

    (16.0)

    Cap. Transfers to LGUs

        20.8

           22.8

           2.0

           9.7

      CARP-LO

              -

               -

                -

    -

    Net Lending

    (7.5)

     5.6

      13.1

    174.9

    TOTAL

       584.0

       626.1

       42.1

       7.2

     

    HIGHLIGHTS OF DISBURSEMENTS OF OTHER EXPENSE CLASSES AS OF APRIL 2014

    Personnel Services grew by 5.0 percent year-on-year or P8.8 billion, amounting to P186.5 billion as of April this year. The increase was due to the payment of salaries for new teaching positions in the Department of Education (DepEd), new police recruits in the Department of Interior and Local Government-Philippine National Police (DILG-PNP), and the grant of incentives to the beneficiaries of the rationalization program.

    Interest Payments decreased by P5.5 billion or 4.5 percent from last year. However, interest payments still comprised a major chunk of allotment releases, amounting to P352.7 billion and making up 18.6 percent of total disbursements as of April.

    Maintenance and Other Operating Expenditures (MOOE) went down by 0.3 percent from last year. However, the decrease was mitigated by releases to public works for roadside maintenance, assistance to informal settler families (ISF) in dangerous areas, and assistance to farmers in Yolanda-stricken areas.

    Net Lending managed to grow by 174.9 percent or P13.1 billion, without any increase in repayments by Government Owned and Controlled Corporations (GOCCs) for the month of April. The P5.6-billion level as of end-April is a significant improvement from the negative P7.5 billion recorded in the same period last year.

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