Government disbursements in February surged by 37%, year-on-year, on the back of higher spending on public infrastructure and social services programs. Government spending reached a total of P240.3 billion in February 2018 with an uptick in the major expense classes, namely Personnel Services (PS), Maintenance and Other Operating Expenditures (MOOE), and Capital Outlays (CO).


“Spending data for the first two months of the year bode well for our fiscal and economic growth targets,” said Budget and Management Secretary Benjamin E. Diokno. “With a strong boost from government spending, we expect first quarter economic growth to approach the government’s full-year target of 7% - 8%,” the Budget Secretary added.


The Build Build Build Program continues to provide momentum to spending growth as Infrastructure and Other Capital Outlays grew by 44%, year-on-year, as it reached P50.5 billion in February. Items that contributed to the growth in capital spending include: completed infrastructure projects of the DPWH such as improvement and rehabilitation of dike systems, flood control and mitigation structures, and construction of roads, bridges and school buildings; the acquisition of office buildings for the BIR-Revenue Region VIII; the construction of dry dock facilities of the DND-Philippine Navy; as well as the opening of Letter of Credit in connection with the COMELEC’s option to purchase vote counting machines for the 2019 National and Local Elections.


MOOE spending also contributed to the growth in spending as it expanded by 52%, year-on-year, to reach P26.8 billion. This is on account of educational assistance and grants provided to qualified students and teachers under the Government Assistance for Students and Teachers in Private Education (P3.5 billion), and the scholarship assistance and grants to students enrolled in State Universities and Colleges under the Higher Education Support Program of the CHED (P1.1 billion). More so, the purchase of various supplies and ammunitions of the Philippine Navy, and the regular operating expenses of various agencies contributed to the spike in maintenance spending.


Meanwhile, Personnel Services registered an annual increase of 22% due to the higher base pay of both civilian, and military and uniformed personnel by virtue of EO No. 201, s.2016 and JR No.1, s.2018, respectively. PS spending reached P58.5 billion in February.


In total, government spending for the first two months of the year is up by 26% compared to the comparable period last year. Infrastructure and Other Capital Outlays continue to pace disbursements as they are up by 35% from January to February. Similarly, maintenance spending and Personnel Services have increased by 32% and 22%, respectively.


For the full report on National Government Disbursement Performance for February 2018, refer to:




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