STATE infrastructure spending in the first five months of the year jumped 41.3 percent compared to a year ago as the government paid completed and partially finished projects.
Infrastructure spending by the national government from January to May climbed to P332.3 billion this year from last year’s P235.2 billion, data from the Department of Budget and Management (DBM) showed.
Partially driven by higher infrastructure spending, overall state spending during the five-month period grew 8.8 percent to P1.8 trillion from P1.66 trillion in the same period in 2020.
For May alone, infrastructure spending doubled to P78.9 billion from P38.9 billion in the same month last year.
The spike was largely credited to the ongoing implementation of infrastructure projects of the Department of Public Works and Highways nationwide, unlike last year when construction activities were barely conducted enhanced community quarantine was imposed on much of Luzon and key areas in the Visayas region.
Payables for the construction of the new Senate building project also contributed to the growth of state infrastructure spending, the DBM said.
Total state spending in May hit P456.7 billion, posting a double-digit growth of 29.2 percent from last year’s P353.6 billion.
For June, the budget department said disbursements will continue to rise but at a slower pace when compared with May. The expected pickup in disbursements is attributed to timing of payments of line agencies and subsidy releases to government corporations.
“Nonetheless, the strong spending performance for the current quarter, which is driven by infrastructure and other capital outlays and Bayanihan II expenditures, bodes well for the country’s growth prospects,” it said.
In preparation for the second semester, the DBM also said it has begun processing the comprehensive release of cash allocations of agencies to enable faster budget execution and aid line agencies in implementing programs, activities, and projects to bolster the country’s economic recovery.
For this year, the government has programmed to spend P1.019 trillion for infrastructure, equivalent to 5.1 percent of the country’s GDP.
Last year, it spent P869.5 billion for infrastructure or 4.8 percent of the country’s GDP.
Image courtesy of Roy Domingo