STATE infrastructure spending as of end-November 2023 fell by 29.4 percent to P56.7 billion from last year’s P80.2 billion, data from the Department of Budget and Management (DBM) showed.
The budget department traced the decline in infrastructure spending to the “different timing of big-ticket disbursements” in the Department of Public Works and Highways (DPWH).
According to the report, actual payments for approved billings and disbursement vouchers for civil works, supplies, equipment, and right-of-way claims were expected to be taken up in December last year.
In addition, payments by development partners for foreign-assisted projects, particularly the Malolos-Clark Railway Project and the North-South Commuter Railway Project, were also lower in November 2023, the DBM said in its end-November 2023 National Government Disbursement
Performance Report.
The overall state spending as of end-November last year fell by 4.7 percent to P433.6 billion from last year’s P455.0 billion, with the report noting lower infrastructure and maintenance expenditures and transfer to local government units (LGUs).
“Disbursements for the 11-month period ended up at P4,675.2 billion, P162.1 billion or 3.6 percent more than the 2022 level,” added the DBM in the report.
For November 2023 alone, state infrastructure spending also went down to P56.7 billion this year, falling 29.4 percent from P80.2 billion in the same month last year.
Overall state spending was reduced by 4.7 percent or P21.3 billion during the month to P433.6 billion from P455.0 billion in the same month in 2022.
According to the budget department, national government expenditures reached P4.6 trillion, as increase of P162.1 billion, or 3.6 percent year-on-year, as of end-November 2023.
For the remaining months of 2023, the DBM said it expects line agencies to hasten the implementation of their programs and projects in December 2023 with the lapsing of cash allocations and agency closing of books, complemented by the implementation of catch-up plans.
Budget Secretary Amenah F. Pangandaman told reporters earlier this year that the department has ordered national government agencies (NGAs) to spend their budget because they are “not spending enough.”
The secretary said they asked all the NGAs to submit their respective catch-up plans to ascertain the reasons for underperformance and undertake measures to address those.
“With that, nung third quarter, nag-bounce back po tayo, positive na yung contribution ng national government agencies sa ating ekonomiya [during the third quarter, we bounced back and the national government agencies’ contribution to the economy became [positive],” Pangandaman said.
The actual full-year 2023 fiscal performance data will still be released between February and March this year.
The DBM also noted in the report that the recovery of spending performance during the second half of 2023 is notable, particularly the acceleration of infrastructure expenditures.
“This, alongside the cooling of inflation, will hopefully help buttress a strong 2023 GDP growth outturn and put in place a more enabling macroeconomic environment for 2024,” it added.