The government ramped up infrastructure spending to P612 billion in the first semester, exceeding the programmed expenditure for the period on the back of early fund releases and procurement, according to the Department of Budget and Management (DBM). Speaking at the Kapihan sa Manila Bay forum on Wednesday, Budget Secretary Amenah Pangandaman said state infrastructure expenditure and other capital outlays went up by 20.6 percent to P611.8 billion from January to June compared to last year's P507.2 billion.

The figure is also 12 percent higher than the P545.3 billion infrastructure spending program set by the Cabinet-level Development Budget Coordination Committee for the first half.

'As early as January, we already provided them (agencies) their allotments,' Pangandaman said.

'For one, most of the projects of the DPWH (Department of Public Works and Highways) also underwent early procurement. So they could implement most of the projects,' she said.

As of end-June, overall infrastructure disbursements, which also account for the infrastructure components of transfers to local government units as well as subsidy and equity to state-run corporations, reached P720.5 billion.

The amount was equivalent to 5.7 percent of gross domestic product, higher than the 5.3 percent of GDP in the comparative period.

Specifically, the higher spending in the first half was due to the implementation of various road infrastructure programs and the completion of ongoing projects of the DPWH nationwide.

The DPWH likewise sped up the completion of its ongoing projects and expedited the processing of payment claims from the 2023 obligations and the current year's budget.

There were also capital outlay projects under the modernization program of the Department of National Defense.

Similarly, this is due to the direct payments made by development partners for implementing foreign-assisted rail transport projects of the Department of Transportation.

Further, overall government spending for the first half rose by nearly 15 percent to P2.76 trillion, a percentage higher than the programmed P2.74-trillion expenditure.

Apart from infrastructure, almost all expenditure items posted year-on-year growth, except for net lending.

Interest payments jumped by 33.6 percent to P377.2 billion and were 2.4 percent higher than the program due to coupon payments for bonds and additional issuances, as well as higher Treasury bills and foreign exchange rates.

The government also recorded higher maintenance and other operating expenses of P479.2 billion due to broader coverage of social protection programs, medical assistance for indigent Filipinos and payment for the allowances of health care workers.

A year-on-year increase in government spending was similarly noted in subsidy support to government corporations, but this was 40.4 percent below the program at P67.2 billion.

This is due to the timing of releases to the Philippine Health Insurance Corp. and the submission of special budget requests and complete documentary requirements by concerned state corporations.

Personnel services expenditures at P701.9 billion were below the program by 8.8 percent due to balances in the Miscellaneous Personnel Benefits Fund and Pension and Gratuity Fund.

As of end-June, the remaining program balance amounted to P472.3 billion or 8.2 percent of the record P5.768 trillion 2024 budget.

The DBM said infrastructure spending and maintenance and other operating expenses would continue to drive disbursements for the remaining months of the year, with 56.1 percent and 52 percent of their full-year program, respectively.

Infrastructure spending will constitute payments and progress billings from ongoing construction works, including those started or accelerated during the summer.

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