GOVERNMENT infrastructure spending and other capital outlays grew 15.4% in the third quarter as public works projects picked up momentum, the Department of Budget and Management (DBM) said.
In a disbursement assessment report, infrastructure and other capital outlays amounted to P142.1 billion in the third quarter, breaching the P137.8 billion target for the period.
The report said that the gains were due to the “faster implementation of public works” by the Department of Public Works and Highways (DPWH).
The quarter’s performance however represents a slowdown from the 33% growth posted in the third quarter of 2016 due to the base effect of one-off expenditures and timing of capital outlay projects of the Armed Forces of the Philippines and the Department of Education.
In September, infrastructure disbursements rose 6.2% to P53.6 billion, though the total was up from P40.1 billion in August.
DPWH road repairs and rehabilitation, as well as flood control and dike improvement projects in Central Luzon, boosted the September total, according to the assessment report.
This also included the construction of fire stations for the Bureau of Fire Protection.
“Infrastructure and other capital spending exceeded the P374.4 billion program for the first nine months of the year by P16.8 billion or 4.5%, cutting down the underspending recorded in the other expense items,” the DBM said.
It noted that the expansion was due to “high volume of progress billings from the contractors of the DPWH as a result of accelerated project implementation.”
“We will continue to exert our best efforts to reach our full year target of P2.909 trillion,” Budget Secretary Benjamin E. Diokno was quoted in the statement as saying.
“Disbursements are expected to pick up in the fourth quarter anticipating further increases in infrastructure and other capital outlays,” the DBM said. – Elijah Joseph C. Tubayan
