Thailand
Philippines: Infra, capital spending inch up 41% in March
State expenditures on infrastructure and capital outlays increased in March due to public works projects around the country, the Department of Budget and Management (DBM) said on Thursday.
The DBM’s latest disbursement report showed expenditures up 41.1 percent to P87.8 billion in the third month of 2021 versus P62.2 billion a year ago. It was 56.4 percent higher, meanwhile, compared to February’s P56.1 billion.
“This was largely propelled by the payment for completed and partially completed infrastructure projects of the Department of Public Works and Highways (DPWH) nationwide such as construction, repair and rehabilitation of access, by-pass, and diversion roads, bridges, and flood mitigation structures and drainage systems,” the Budget department said.
Disbursements picked up by 25.1 percent to P195.2 billion in the first quarter compared to P156.1 billion a year earlier.
“Although the growth in infrastructure and other capital outlays may be partly due to base effects, the increase in infrastructure disbursements for the first quarter of this year of P39.1 billion was enough to completely offset the P22.1-billion reduction recorded in the first quarter of last year,” the DBM said.
“It also recovered from the negative growth recorded in the preceding two quarters of 33.0 percent in the third quarter and 32.7 percent in the fourth quarter of 2020,” it added.
January-March infrastructure and capital expenditures raised overall state spending for the period to P1.01 trillion including maintenance, personnel services, and subsidies. This was a 19.9-percent rise, or P168.7 billion, from the previous year’s figure.
“Disbursements for the second quarter are still expected to be mostly driven by Covid-19 related expenditures, specifically with the release of allotments for the procurement of Covid-19 vaccine, and the financial assistance to NCR Plus due to the ECQ (enhanced community quarantine),” the Budget department said.
NCR Plus covers the National Capital Region and the provinces of Bulacan, Laguna, Rizal and Cavite.
The DBM further said that the DPWH’s ongoing construction projects, as well as the distribution of program subsidies to government-owned and -controlled corporations based on submitted requests, would enhance spending for the period.
“With respect to the economy, prospects remain upbeat with the delivery of the supply of vaccines steadily picking up and the rollout of the national vaccination program ongoing,” it added.
This will be aided by the continuation of key health and social programs, infrastructure projects, loans to micro, small and medium enterprises, and other affected sectors.
Lastly, the Budget department said the economy could be reopened further to help restore consumer and business confidence and achieve recovery when accompanied by the public’s rigorous adherence to health and safety protocols, management of Covid-19 cases, and improvements in the health care system.
Source: https://www.manilatimes.net/2021/05/21/business/top-business/infra-capital-spending-inch-up-41-in-march/1800078