Gov’t spending jumps by 28% in October: DBM

December 6, 2017

National government disbursements posted a 28.2 percent increase in the month of October, the highest growth recorded so far in the year, as spending reached P226.9 billion, the Department of Budget and Management (DBM) said in a statement Wednesday.

This brings cumulative disbursements from January to October at P2.241 trillion, a 10% increase year-on-year, it added.

“The significant growth in government disbursements for the month of October is encouraging news in view of our expansionary fiscal policy,” said Budget Secretary Benjamin Diokno. “The DBM, in coordination with the implementing agencies, will continue to monitor and improve spending performance.”

“We expect government disbursements to ramp up further in the last two months of the year, especially with the one-year validity of the 2017 appropriations,” Diokno added. “The government is committed in its full-year disbursement target of P2.909 trillion,” he said.

In terms of expense class, current operating expenditures rose by 35.2 percent, reaching P164.1 billion in October.

It was primarily driven by the growth in maintenance and other operating expenditures, which grew by 111.0 percent to reach P40.4 billion.

This was on account of the release of cash assistance under the Pantawid Pamilyang Pilipino Program (4Ps) , social pension and other assistance programs for the victims of natural disasters and calamities.

Expenditures in connection with the relief works and operations of the Department of Social Welfare and Development for Marawi contributed to the spike in spending. Personnel services amounted to P60 billion, increasing by 8.8 percent due to the higher compensation of civilian personnel and increased allowances of military and uniformed personnel pursuant to EO 201, s. 2016.

Capital outlays amounted to P60.6 billion in October for a 10.4 percent year-on-year increase. Infrastructure and other capital outlays comprised the bulk of capital spending reaching P51.5 billion, expanding by 17.8 percent.

The boost in infrastructure spending was primarily due to the public works projects of the DPWH such as road construction and flood control rehabilitation or improvements.

Some P331.2 billion or 9.9 percent of the P3.35 trillion obligation program is still available for release to line agencies sourced from both the agency-specific budgets and Special Purpose Funds. DMS