PHL infrastructure spending down 23% in November

State spending on infrastructure fell by over a fifth in November last year, but the 11-moth tally was still up, according to Department of Budget and Management (DBM) data.

Infrastructure expenditures went down 23 percent year-on-year to P15.3 billion in November, data uploaded on the DBM website Tuesday showed.

But the total amount in the 11-month period still rose 20.5 percent to P223.3 billion, representing 75.15 percent of the P297.1-billion full-year 2013 infrastructure spending program.

The broader capital outlay – which includes equity and capital transfers to local governments – declined by 14.1 percent to P21.2 billion in November. The 11-moth tally was still up 16.6 percent to P289.9 billion.

Security Bank Corp. economist Patrick Ella surmised that the slower infrastructure expenditure was due to prudence amid controversy surrounding Priority Development Assistance Fund (PDAF) or more commonly known as the pork barrel, and the government’s Disbursement Acceleration Program (DAP).

“I am not surprised, this should be an initial reaction to the PDAF and DAP controversies,” he said in a telephone interview Tuesday.

In mid-November, the Supreme Court declared unconstitutional the PDAF – the multimillion-peso discretionary fund received by lawmakers every year – following public outcry over accusations of widespread and systematic fund misuse by some members of Congress.

The high court is still debating on the constitutionality of DAP, which is a stimulus package under the Aquino administration.

Budget Secretary Florencio Abad has yet to respond to GMA News Online questions specific to the November infrastructure spending decline.

But Abad, in a statement sent to reporters Tuesday afternoon, said the government will push for “quicker, more high-impact disbursements this year.

“We’re continuing that same trend this year, where we ramp up infrastructure and other priority expenditures to sustain our economic momentum and ensure the delivery of improved public services,” Abad was quoted as saying in the statement.

Ella said the decline in November could only be a blip, and infrastructure spending will likely gain momentum. “Going forward, it will be better,” he noted.

In the statement, DBM said maintenance and other operating expenditures grew by 12.4 percent to P254.2 billion as of end-November.

Disbursements for personnel services also went up by 8.5 percent year-on-year to P538 billion in January to November, due to salary adjustments, performance-based incentives and and payment of Total Administrative Disability pension of World War II veterans.

Allotments to local government units also rose 10.6 percent to P221.7 billion.

Subsidies nearly doubled annually to P39.1 billion reprogramming of releases for the price stabilization program of the National Food Authority and National Health Insurance programs.

Interest payments likewise grew by 5.1 percent to P296.7 billion. – VS, GMA News