Infra, capital spending up 45% in April

State infrastructure and capital outlays climbed in April as a result of public works projects around the country, the Department of Budget and Management (DBM) said on Thursday.

According to the DBM’s latest disbursement report, expenditures inched up by 45 percent to P58.2 billion in the fourth month of 2021, compared to P40.1 billion the previous year. In comparison to March’s P87.8 billion, it was down 33.7 percent.

“Infrastructure spending was bolstered largely by the implementation of various infrastructure projects of the DPWH (Department of Public Works and Highways) nationwide,” the Budget department said.

Construction and rehabilitation of access, by-pass and diversion roads, as well as bridges; flood mitigation activities such as slope/river bank protection and dredging works; design and construction of off-site modular hospitals, and construction of linear parks and other government administrative buildings are among the projects mentioned.

In the first four months of 2021, disbursements improved by 29.1 percent to P253.4 billion, up from P196.2 billion a year earlier.

The DBM said this was “propelled by the payments made for completed and partially completed infrastructure projects of the DPWH, and mobilization costs of ongoing construction activities mainly for its road infrastructure program.”

Payments associated with the Department of Transportation’s (DoTr) foreign-assisted projects, such as the Metro Manila Subway Project Phase 1 and the North-South Commuter Railway Project, also contributed to the period’s wider infrastructure and other capital outlays, it added.

Infrastructure and capital expenditure boosted overall state spending to P1.35 trillion from January to April, including maintenance, personnel services and subsidies. This was a 3.3- percent climb over the previous year’s number, or P43.4 billion.

The release of P124.3 billion in allotments in May, according to the Budget department, might drive government spending even higher.

“Preliminary data for the month of May 2021 indicate that spending likely exceeded the growth rate posted for the same month last year,” it added.

The DPWH’s huge infrastructure expenditures, as well as disbursements for the Departments of Education, Health, and Interior and Local Government flagship programs; transfers to local governments; and releases to government-owned and -controlled corporations, are all attributed to the strong performance.

Article and Photo originally posted by Manila Times last June 11, 2021 and written by Mayvelin U.. Caraballo.