In August 2018, infrastructure and other capital outlays amounted to PhP 68.4 billion, which is 70.5% or PhP 28.3 billion more than the same period last year. This increase was mostly due to the various projects implemented by the Department of Public Works and Highways (DPWH); which include road widening, repair, and construction, flood control, and drainage improvement projects, among others. The modernization program of the Armed Forces of the Philippines (AFP) also contributed to the surge in spending with the procurement of military communication equipment.

Year-to-date expenditures for infrastructure and other capital outlays amounted to PhP 505.6 billion, an increase of 49.8% or PhP 168 billion compared to the same duration in 2017.

Current Operating Expenditures

Expenditures for personnel services in August year-on-year also increased by 32.2% or PhP 17.7 billion due to the requirements for creation and filling of positions at the Department of Education (DepEd); higher pay for both civilian, military and uniformed personnel; and the retirement and terminal leave benefits in various agencies, specifically the Philippine National Police (PNP) and the AFP.

Maintenance and Other Operating Expenditures also grew year-on-year by PhP 3.5 billion or 11.9% to PhP 33.1 billion as a result of the operating requirements of the DepEd for its K-12 Program and net lending to the National Food Authority in support of its Rice Importation Program.

Status of Allotment Releases

PhP 53 billion in allotments have been released for the month of August, this amount mostly comprised of the following:

• PhP 5.9 billion in personnel services deficiency for pension and terminal leave benefits in the PNP,

• PhP 3.7 billion in subsidy to government corporations,

• PhP 2.9 billion in pension and retirement and gratuity benefits in other agencies,

• PhP 2.3 billion for the Marawi Rehabilitation and Recovery program,  

• and PhP 2.2 billion for the Expansion of the Philippine Rural Development Project of the Department of Agriculture.

As of end-August 2018, allotment releases amounted close to PhP 3.498 trillion, or nearly 93% of the program for the year. This high percentage indicates a significant amount of public funds made available for implementing agencies to finance their respective programs, activities, and projects.

Secretary Benjamin Diokno asserted “We owe it to the Filipino people that implementing agencies immediately utilize the public funds that have been released to ensure the effective delivery of public services within the fiscal year. This is in accordance with annual cash-based budgeting that Congress should pass into law for future administrations to adhere to.”

Php 269.1 billion in obligations remain

For the last quarter of 2018, 7.1% of the PhP 3.767 trillion obligation program or Php 269.1 billion have yet to be released. This amount is largely composed of Php 124.3 billion in agency-specific budget and Php 140.4 billion in Special Purpose Funds (SPF).

Some of the big-ticket program balances under the regular budget of agencies include the remaining requirements for creation and filling of positions at the DepEd and the Educational Facilities Fund for implementation by the DPWH.

In addition, unreleased allotments from the SPFs comprise mostly of program balances from the subsidy to government corporations, the miscellaneous personnel benefits fund, and the pension gratuity fund.

“The allotment releases for these remaining balances are being closely evaluated by the budget department to maximize the use of available funds and to ensure whether these can still be obligated and delivered within the year” Secretary Diokno said.  

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