AlwaysFree: The Philippines’ Government Infrastructure Spending Still Below Program

According to The Philippine Star article published on December 12, 2022, the government hiked its infrastructure expenses in the nine months to September this year largely on road projects, but this was still slightly below the P759-billion spending program amid delays due to the conduct of the recent elections.

Based on the latest national government disbursement performance report of the Department of Budget and Management (DBM), state infrastructure expenditure and other capital outlays jumped by almost 40 percent to P99.1 billion in September from P71.2 billion in the same period last year.

The DBM attributed this to the diasbursements of the Department of Public Works and Highways (DPWH) for road infrastructure projects.

Releases for the Active Transport Bike Share System and Safe Pathways Program of the Department of Transportation also contributed to the higher capital expenditures in September.

For the nine-month period, infrastructure spending rose 13.4 percent to P727.7 billion from P641.5 billion in January to September 2021.

Apart from road infrastructure, contributing to the increase were the capital outlay projects under the Revised Armed Forces of the Philippines Modernization Program of the Department of National Defense and direct payments made to suppliers by development partners for the implementation of foreign-assisted projects.

These are Metro Manila Subway Project Phase 1, Malolos-Clark Railway Project, and Maritime Safety Capability Project.

Despite the increase during the nine-month period, infrastructure expenses still fell four percent short of the P758.9-billion program set by the government.

“This was mainly attributed to the unintended delays brought about by the election ban on public works during the earlier part of the year relating to the conduct of the May 2022 elections,” the DBM said.

Similarly, the slower-than-expected disbursements for the period was due to modification of projects, unsettled right-of-way problems,  intermittent weather conditions, and delays in the submission of progress billings with complete documentary requirements by contractors.

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