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| Disbursements by Expense Class, 2011 vs. 2012 (in PhP Billion) |
Press Release
25 June 2012
NG DISBURSEMENTS GROW 13.1% Y-O-Y
AS OF MAY, 16.7% IN MAY
ABAD: MAY OUTLAYS HIGHEST SO FAR,
DRIVEN BY MOOE & CO
The
Department of Budget and Management (DBM) today announced that national
government departments and agencies have disbursed a total of P668.4 billion
from January to May this year, or 13.1 percent higher year-on-year.
Secretary
Florencio B. Abad said that disbursements in May alone reached P151.3 billion
or 16.7 percent higher than in the same month of last year, the highest
disbursement level and fastest year-on-year growth so far compared to the
previous months of the current year.
He
reported that the growth of disbursements during the five-month period was
driven by non-interest expenses, which grew by 13.6 percent to P537.44 billion.
In particular, infrastructure spending and maintenance expenditures (MOOE),
which grew by 83.0 percent and 36.5 percent year-on-year, respectively,
bolstered spending as of May.
(See
succeeding section “Highlights of 2012 Disbursements as of May” for more
information of MOOE and infrastructure spending performance)
He said
that with expenditures growing faster than revenues, the fiscal deficit
increased almost ten-fold to P22.8 billion as of May from P2.9 billion as of
April.
“We are pleased
to report that national government disbursements continue to accelerate and
gain momentum. The Aquino Administration is committed to build on our economy’s
growth in the first quarter through reformed spending with maximum impact,”Abad
said.
“We remain
vigilant vis-à-vis the continuing risks posed by global uncertainties. We also
continue to closely monitor the financial and physical performance of agencies
to troubleshoot implementation bottlenecks and to address capacity
constraints,” he said.
Abad is
confident that disbursements in the second quarter will sustain the gains of
the first quarter, when public spending was a key driver of the 6.4-percent
growth in gross domestic product (GDP).
He also
expects spending to be more robust in June due to the early implementation of
salary increases under the fourth tranche of the Salary Standardization Law III
(SSLIII), payments of conditional cash transfers, as well as expenditures in
preparation for the opening of classes.
The
Budget Chief nonetheless emphasized that the work of improving the
implementation of priority programs and projects continues. He notes that of
the P521.3 billion in Notices of Cash Allocation (NCAs) released as of the end
of May, agencies were able to disburse P460.0 billion or 88.2 percent.
While
lower than the NCA utilization rate of 90.1 percent as of April, this could be
explained by the higher magnitude of NCA releases compared to previous months:
P141.3 billion in May, which was 48.6 percent larger than the average NCA
release of P95.1 billion per month in the preceding four months. The amount of
NCAs utilized in May, at P117.3 billion, was also 36.9 percent larger than the
average monthly NCA disbursement of P85.7 billion.
He said
that policy measures and innovations are being taken to improve the delivery of
social and economic services. One of these is the reallocation of budgets that
remain unobligated by June 30 to fast-moving and high-impact programs and
projects that support the President’s social contract.
“We have
already released the bulk of agency budgets in order to speed up public
spending. However, we are prepared withdraw those which remain unobligated by
June 30, and to propose to the President that these unutilized budgetary
allocations be realigned to faster-moving programs and projects,” he said.
Already,
Abad is keen on augmenting funds for high-impact and urgent projects that
support agrarian reform communities, in line with the President’s recent
meetings with farmers’ groups; tourism access roads; and schoolhouses, rural
health facilities and social protection programs. These new projects and
budgetary requirements will be disclosed after the magnitude of unobligated
budgetary allotments has been determined.
Highlights of 2012 Disbursements as of May, per Expense Class
· Infrastructure and Other Capital
Outlays (CO) grew by
an astounding 83.0 percent or P35.1 billion to P77.3 billion as of May. In May
alone, capital spending grew by 239.7 percent year-on-year due to increases in
payments for progress billings for various road construction and upgrading
projects of the Department of Public Works and Highways (DPWH). The larger
outlays for irrigation projects of the Agriculture Department this year
compared to 2011 also bolstered infrastructure spending.
· Maintenance and Other Operating
Expenditures (MOOE) grew
strongly by 36.5 percent or P25.8 billion to P96.5 billion as of May due to
higher provisions for various development and social protection programs of
government, such as the Pantawid Pamilyang Pilipino Program (4Ps). Abad
nonetheless said spending levels could further be increased by addressing
implementation bottlenecks, such as procurement and project readiness issues,
as reported by agencies implementing priority programs of the Aquino Administration.
· Interest Payments (IPs) as of May increased by 11.2
percent or P13.2 billion to P131.0 billion because of higher issuances of fixed
rate treasury bills and retail treasury bonds. This growth rate is nonetheless
slower than the rate as of April as IPs in the month of May grew by only 4.6
percent or P717 million to P16.4 billion.
· Personal Services (PS), as expected, increased by 7.6
percent or P15 billion to P211.9 billion mainly due to the mandatory increase
in salaries under the SSL III. PS spending is expected to further increase this
year due to the Fourth Tranche of SSL III and expected claims of voluntary
early retirees under the Rationalization Plan.
· Allocations and Capital Transfers
to Local Governments (LGUs) decreased by 5.5 percent or P6.9 billion to 119.6
billion. As expected, this was due to the decline in the mandated Internal
Revenue Allotment (IRA) of LGUs. At the same time, releases for special shares
of LGUs in the Tobacco Excise Tax declined year-on-year, as bulk of releases
for this year is programmed in the latter months of the year.
· Subsidies and Equity to
Government Corporations (GOCCs) declined by 3.9 percent or P0.5 billion to P12.3
billion, due to the P1.3-billion decline in GOCC subsidies. This, however, was
offset by larger equity infusion to LGUs of P0.8 billion due to one-time
releases for credit insurance and mortgage operations of the Home Guarantee
Corporation and settlement of accounts payables of the National Home Mortgage
and Finance Corporation.
· Tax Subsidies declined by 13.6 percent or P1.9
billion to P12.0 billion due to lower tax expenditures of the Bureau of Customs
in view of the lower importation requirements of government agencies,
particularly the National Food Authority.
For
inquiries, further questions and requests for interview, please contact:
OSEC-Public
Information Unit
media@dbm.gov.ph
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