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Friday, March 29, 2024

Infrastructure spending rose 58% in Q3 – Abad

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The government’s infrastructure spending jumped 58 percent to P92.6 billion in the third quarter of the year from P58.8 billion year-on-year, but still fell below the target for the period, the Budget Department said Monday.

Spending on infrastructure and capital outlays was P8.2 billion short of the P100.8-billion target in the third quarter of 2015.

The department said the growth in capital outlay spending was driven by releases for aircraft acquisition of the Armed Forces of the Philippines Modernization Program and infrastructure programs of the Departments of Education and Tourism, as implemented by the Department of Public Works and Highways.

Florencio Abad

Meanwhile, personal services increased 7.3 percent to P146.5 billion from the P136.5 billion in the same period in 2014. The figure is also 13.1 percent short of the P168.5-billion target.

Interest payments slightly increased 2 percent to P99.6 billion from  P97.7 billion in the three-month period last year. The payments fell 11 percent short of the target of P111.9 billion.

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The July-to-September disbursement performance was also supported by maintenance and other operating expenses spending, which grew 46.8 percent year-on-year. 

“This is mainly due to expanded maintenance expenditures in relation to the implementation of the Conditional Cash Transfer and other community development programs of the Department of Social Welfare and Development , the PAMANA in the ARMM program of the Department of the Interior and Local Government, and the Bottom-Up Budgeting,” Budget said. 

Infrastructure and capital outlays spending reached P243 billion from January to September, 16 percent short of the P289.3-billion target for the nine-month period.

Infrastructure spending in the nine-month period  increased 24.3 percent from the P195.4 billion recorded in the same period in 2014.

Budget Secretary Florencio Abad said the spending momentum would be sustained until the end of the year. He was optimistic the economic full-year growth woud reach 6 percent, as public spending would play a pivotal role in the economic expansion in the fourth quarter.

The economy expanded 6 percent in the third quarter following a robust household consumption.

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