Infrastructure spending expected to accelerate after election moratorium
The Ministry of Finance (DOF) said infrastructure spending is expected to be in the third quarter after the May election paused.
“We expect this to be successful in the third quarter,” Finance Minister and Chief Economist Domini S. Velasquez said on SIDescription of the event held Thursday.
The Department of Budget and Management (DBM) reported spending on infrastructure and other capital expenditures fell 9.2% to pesos 123.8 billion in May.
In the first five months, spending fell 0.6% to P417.5 billion.
“The lower offense is mainly attributed to the lagging effect of election-related bans on public spending, which in turn affects the Department of Public Works and Highways (DPWH)’s withdrawal performance on road infrastructure programs,” DBM said in its revocation report.
The Election Commission’s 45-day ban on public works spending began on March 28 and ended with the May 12 election.
Budget Secretary Amenah F. Pangandaman said spending is expected to be collected in late May.
Meanwhile, the technical consulting group Libra Konsult, Inc. Nigel Paul C. Villarete, senior consultant for public-private partnerships, said the slowdown in spending due to adverse weather is “continuous” and is being considered every year.
The Government Meteorological Bureau (called Pagasa) predicts a maximum of 16 cyclones between August and December.
“However, we should not have a negative view of the routine and expected results of these election processes, and what happens is already included in the plans and project plans of various agencies in our government,” Mr Villarete said through Viber.
The government sets a target for public infrastructure spending, accounting for 5%-6% of GDP.
According to the budget for expenditure and financing sources, the government hopes to spend $1.54 trillion on infrastructure in 2025. Aubrey Rose A. Inosante
