Q2 govt spending likely picked up – DBM

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Q1 spending 13% below target

GOVERNMENT spending likely improved in the second quarter compared to the first when spending was 13 percent below target, the Department of Budget and Management (DBM) said.

“Certainly much better than the first quarter,” Budget Secretary Florencio Abad told reporters in an interview on Thursday, when asked about the rate of government disbursements during the second quarter.

National government disbursements totaled P504.0 billion in the first quarter, higher by 4 percent or P21.5 billion compared to the same period in 2014, but 13 percent below target for the period.


Citing preliminary data from the Department of Public Works and Highways (DPWH), Abad sees improvement in infrastructure spending in June.

“[The DPWH] numbers are good. In fact, in June, infrastructure disbursement went as high as P25 billion,” he said.

Government spending data for May and June have yet to be released by the DBM.
As of April, the government has disbursed a total of P156.5 billion, which is 9 percent or P12.9 billion higher than the comparable figure last year.

Spending for infrastructure and other capital outlays accelerated in April to P6.7 billion, a 40.3 percent increase from the comparable year-ago level.

The DBM attributed this to the marked improvement in the utilization rate of notices of cash allocation of the DPWH to 77.7 percent in April 2015 from 54.5 percent in April 2014.

Based on DPWH disbursement reports, the faster rate of utilization translated to a P5.2 billion increase in disbursements for capital outlay (CO) year-on-year.

Other releases in April which further boosted capital outlay include those for payment of due and demandable accounts payable by Departments of Agriculture (DA), Transportation and Communications, and Interior and Local Government, among others, as well the implementation of the P2-billion World Bank-funded Philippine Rural Development Project under the DA, the agency said.

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