Angelo Taningco
Economist, Treasury Group
The government’s infrastructure disbursements and other capital outlays grew 31% year-on-year (yoy) and 38% month-on-month (mom) to P46.2 billion in May, marking its sharpest growth in the first five months of the year, according to the Department of Budget and Management’s (DBM) latest government disbursement report released on 5 July.
Figure: Government’s Infrastructure Spending
Jan. 2015 – May 2017
(PHP billion)
Source: Department of Budget and Management
According to the DBM, the strong growth in infrastructure spending during May was largely brought about by the Department of Public Works and Highways (DPWH) road construction, repair, and rehabilitation as well as flood-control infrastructures.Over the January-May period, infrastructure and other capital spending grew 8% yoy to P197.2 billion again partly due to DPWH’s road projects. We estimate this cumulative amount to be about one-third of the government’s projected cash disbursements for infrastructure and other capital outlays this year. Meanwhile, we expect public infrastructure spending to accelerate further in the upcoming months, with June to have a potentially bigger infrastructure spending.
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