DISPOSAL OF THE WOMAN by the National Government fell by 11.1% year-on-year in August as heavy rains disrupted the implementation of public works. projects, Department Budget and Management (DBM) said.
In its latest report posted on its website on Tuesday, DBM said infrastructure and other capital expenditures fell to P108.6 billion from P122.1 billion last year.
Month-on-month, infrastructure spending dropped by 13.1% from P125 billion in July.
DBM pointed out that the decline reducing the funds released by the Department of Public Works and Highways (DPWH) due to “bad weather that has delayed the implementation of the project.”
Economist Rizal Commercial Banking Corp. Michael L. Ricafort said recent storms have caused delayed heavy flooding. infrastructure projects.
The DBM also cited “delays in the delivery of contractor billing documents, which affected the processing times and disbursement of payments for ongoing projects.”
There have also been adjustments to project timelines as some major infrastructure projects have been delayed or rescheduled, it said.
About P22 billion worth of outstanding checks as of the end of August have not yet been deposited by contractors, DBM said.
“Similarly, construction costs have decreased year-on-year without the release of big-ticket funds for domestic counterparts in various foreign-aided projects of the DoTr (Department of Transportation),” DBM said.
As of Aug. 31, significant allocations include P13.3 billion under the DoTr for capital expenditures.
This was allocated “mainly to meet the loan requirement for the implementation of the Davao Public Transport Modernization Project and the payment of the relevant costs compared to the implementation of Phase 1 of the Metro Manila Subway Project and the North-South Commuter Railway. The program,” said DBM.
About P3.7 billion was also allocated to the Department of Information and Communication Technology at the end of August as part of the funding requirements for the government’s Free Wi-Fi Internet in Public Areas program.
In the January-November period, infrastructure and other capital expenditures increased by 14.2% to P845.3 billion from P740.3 billion last year.
DBM expects that infrastructure spending will improve after the allocation of P15.1 billion to the DPWH in September. This will largely address the needs of the government’s counterparts for different foreign aided projects this year, such as the Metro Manila Subway, the North-South Commuter Railways System and the Davao Public Transport Modern Project.
About P10 billion will be allocated for the revised plan to develop the Armed Forces of the Philippines.
Mr. Ricafort said the agencies may accumulate infrastructure spending before the 2025 midterm elections.
“In the coming months, government spending, especially on infrastructure and other activities, can be accelerated in preparation for the mid-term elections, especially before the ban on elections, which could be a major source of economic growth.”
Nigel Paul C. Villarete, a senior advisor on private-sector relations at the technical consulting group Libra Konsult, Inc., said the government should make plans to ensure that the weather is not bad.fcomplete construction schedules.
“In the middle of the year to the coming months, there will be a big deviation in spending due to the onset of the rains, which is significant.fsays efworking on construction projects,” said the Viber message.
The government aims to spend 5-6% of gross domestic product on infrastructure this year. – Beatriz Marie D. Cruz
Source link
