DBM: Government infrastructure spending declines 16% in February

MANILA, Philippines — Infrastructure spending declined in the first two months and is expected to remain muted for the rest of the first semester due to the election spending ban.

According to the Department of Budget and Management (DBM), infrastructure expenditure declined by more than 16 percent to P90 billion as of end-February from P107.4 billion a year ago.

The DBM attributed the drop to the schedule of payables to some of the projects delivered given that the Commission on Elections (COMELEC) has enforced an election spending ban.

Projects with payables to be delivered in the latter part of the year include the farm infrastructure of the Department of Agriculture and road constructions of the Department of Public Works and Highways.

Also, payments for infrastructure projects will be made for the rail buildups of the Department of Transportation and for the Revised AFP Modernization Program of the Department of National Defense.

The DBM expects spending to pick up in March when state agencies are mandated to use up all of their cash allocations, but afterward anticipates a spending slowdown due to the 45-day election ban.

“Spending is likely to improve in March as line agencies are expected to utilize their remaining cash allocations that have been fully credited during the quarter, since the same will lapse on the last working day of the month,” the DBM said.

“However, for the second quarter of the year, the prohibition on public spending for infrastructure and other projects as mandated by Omnibus Election Code might temporarily affect the implementation of some programs and projects, and hence could likely result in muted disbursements during the 45-day election ban period,” it said.

The Comelec approved a few exemptions to the public spending ban, including the rollout of stimulus measures, such as the Tulong Pangkabuhayan sa Ating Disadvantaged Workers of the Department of Labor and Employment.

The poll body also authorized the sustained enforcement of regular social protection programs like the Pantawid Pamilyang Pilipino Program, as well as the COVID vaccination drive and the fuel subsidy delivery of the Land Transportation Franchising and Regulatory Board.

Infrastructure spending increased by 31 percent to P895.1 billion in 2021 from P681.5 billion in 2020, beating the government’s program of P761.2 billion for the year

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The article was originally published in PhilStar Global and written by Elijah Felice Rosales.