MANILA – Fiscal spending on infrastructure exceeded the target in the first half of 2018 on the back of higher disbursements related to the administration’s “Build, Build, Build” program, the Department of Budget and Management (DBM) said.
Data released by the DBM showed infrastructure and capital outlays in the first half of the year stood at P352.7 billion, higher by P14.4 billion or 4.3 percent from the P338.3 billion on program.
Infrastructure spending in the first semester is also higher by 41.6 percent or P103.6 billion from P249.1 billion in January to June 2017.
“This is attributed to infrastructure projects of various agencies, especially the road infrastructure projects of the Department of Public Works and Highways (DPWH),” Budget secretary Benjamin Diokno said in a breakfast forum in Manila.
“Specific to June 2018, these projects include the construction, widening, upgrading and preventive maintenance of road networks nationwide under the DPWH,” he said.
Classrooms and school facilities under the Department of Education and State Universities and Colleges were also repaired and rehabilitated, while the Department of Health acquired hospital and medical equipment and the Department of Transportation funded rail transport projects and bought airport security equipment.
Total disbursements during the period amounted to P1.603.6 trillion, up 20.5 percent from P1.330.8 trillion year-on-year.
It also exceeded the P1.569.1-trillion program by 2.2 percent or P34.4 billion.
“The performance of government spending is unprecedented, because we are ahead of the program for the first time in history,” Diokno said.
“This is a result of the reforms we have implemented in planning and budgeting. This quicker spending should translate to more classrooms for our students, better transport systems for our commuters, improved health and social protection programs for the poor, among other public service provisions,” he said.
Although disbursements exceeded the program in the first half of the year, Diokno noted that revenue collection remained robust and gave the government enough fiscal space to stay well within the deficit ceiling.
Revenue collections as of end-June 2018 reached P1.411 trillion, exceeding the target of P1.305 trillion by P105.7 billion or 8.1 percent.
“This is largely due to the impact of the Tax Reform for Acceleration and Inclusion, improved revenue collections of the Bureau of Internal Revenue and the Bureau of Customs, as well as higher remittances of dividends by government-owned and controlled corporations,” Diokno said.
The expenditure-revenue mix resulted in a fiscal deficit of P193.0 billion, which was however P71.3 billion or 27.0 percent below the P264.3 billion on program in the first half of the year.
“With the better-than-programmed figures on revenues, spending, and the fiscal deficit, we will continue to spend wisely and promptly to service the huge needs of our people, especially in public infrastructure and social services,” Diokno said. (GMA News)
