Higher govt spending seen in H2: Abad


Posted at Sep 03 2012 01:49 PM | Updated as of Sep 04 2012 02:21 AM

MANILA, Philippines - National government spending is expected to further increase in the second half of the year, Budget Secretary Florencio Abad said on Monday. 

In a statement, Abad said key reforms being implemented by the Department of Budget and Management have resulted in higher spending for infrastructure and capital outlay and Maintenance and Other Operating Expenditures (MOOE). 

In the January to June period, infrastructure and capital outlay rose 64.7% to P106.2 billion, while disbursements for MOOE jumped 37.2% to P134.6 billion.

"We’ve already implemented some landmark reforms to speed up disbursements across all government departments and agencies, as well as clear up bottlenecks that only result in costly delays in project execution. We’re pleased to note that these measures have already produced results, with departments optimizing the releases made to them and disbursements enjoying higher levels in July," Abad said.

Earlier, the DBM said a total of P958 billion of the 2012 National Budget had already been released in the first 7 months of the year, 15% higher than the previous year.

"In addition, the establishment of Account Management Teams in the largest-spending departments helped drive disbursements and speed up budget utilization, specifically through more systematic planning, better budgeting, and improved monitoring processes. Furthermore, we’ve warned laggard agencies that unless they obligate their appropriations by September, we will have to forfeit the releases in favor of fast-moving projects," Abad added. 

The growth in disbursement levels was attributed to improved utilization of Notices of Cash Allocation in July, which rose to 97.2% of the effective NCAs issued from January to July 2012. This was a year-on-year increase of 19.1%, resulting in quicker NCA utilization by some agencies including the Department of Public Works and Highways and the Department of Social Welfare and Development.