Gov’t infrastructure spending up 2.1% in May
The Philippines government’s infrastructure increased by only 2.1% year-on-year to ₱80.5 billion (US$1.42 billion) in May, compared to ₱78.9 billion (US$1.40 billion) last year.
According to the Department of Budget and Management (DBM), the weak growth is due to the 45-day public works ban in place during the election period.
The rise in the Department of Transportation’s constructive receipts of cash (CRC) payments for the Malolos-Clark Railway Project and the first phase of the Metro Manila Subway Project were among the factors that “partly offset” fewer disbursements from the Department of Public Works and Highways (DPWH) during the 45-day election spending ban, said the DBM.
However, the monthly tally only brought total disbursements for infrastructure from January to May to ₱334.6 billion (US$5.94 billion), a 0.7% increase from the same period the previous year.
Year-to-date, national government disbursements amounted to ₱1.89 trillion (US$33.5 billion) in May — 4.7% higher than in 2021.
Meanwhile, preliminary reports in June 20% y-o-y increase in infrastructure spending driven by subsidy releases, higher National Tax Allotment, and swifter capital outlay releases.
For the rest of the year, DBM projected an accelerated pace in government spending “with the submission of special budget requests by line agencies to implement their respective programs, activities, and projects (PAPs) as the government also transitions under the new Administration.”
