GOVERNMENT disbursements on infrastructure and other capital outlays grew by nearly a fifth in August from last year, according to data the Department of Budget and Management (DBM) released last weekend.

The August 2017 disbursement assessment report showed infrastructure and other capital outlays rising by 18.1% to P40.1 billion in August from P34 billion the past year.

The latest amount was 17.1% less than July’s P48.4 billion.

The report attributed the annual increase to projects by the Department of Public Works and Highways (DPWH), Department of Education (DepEd) and the Department of Health (DoH).

The amount includes payments for road improvement, repair and rehabilitation; flood control projects, construction/improvement of pumping stations, dike and drainage systems. The report particularly cited, among other items, payment in August by DPWH of P1 billion to settle right-of-way claims as well as P3.6 billion for the P35.42-billion 44.63-kilometer Cavite-Laguna Expressway now being built to connect Manila-Cavite Expressway (CavitEx) and South Luzon Expressway.

For DepEd, capital outlays were from repair and rehabilitation of schools, while the DoH spent for upgrading of health facilities, as well as the purchase of medical equipment.

At the end of eight months, infrastructure and other capital outlays grew 11.9% to P337.6 billion from the P301.7 billion spent in 2016’s comparable period.

This is equivalent to 69.62% of the P484.9 billion programmed disbursements on infrastructure and other capital outlays this year, as indicated in the Budget of Expenditures and Sources of Financing.

“The upswing in infrastructure and other capital outlays… resulted from the implementation of public infrastructure projects of the DPWH (road repair and rehab, flood control projects),” the report read, while also citing DoH’s upgrading of health facilities and purchase of medical equipment.

It also highlighted the Transportation department’s rail and transport infrastructure outlays, and state universities and colleges’ construction, repair and rehabilitation of facilities, as well as equipment acquisition.

Also fueling August’s increase was the Armed Forces of the Philippines’ purchase of ammunitions, transport equipment “and other defense assets.”

The DBM said in the same report that it expects overall disbursements in September to have been “substantial owing to huge infrastructure spending requirements of DPWH.”

At the same time, infrastructure spending growth rate is expected to have eased in September over base effects from the one-time P20.5-billion payment to Philippine International Air Terminals Company Inc. last year as part of the expropriation case involving Ninoy Aquino International Airport Terminal 3.

DBM also cited payment for right-of-way claims for DPWH projects, as well as AFP and Philippine National Police equipment acquisition.

“These are expected to further increase disbursement levels in the succeeding months,” DBM said. — E. J. C. Tubayan

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