Philippines: Infra spending builds up to PHP40bn in Aug 17

• Government expenditure on infrastructure projects amounted to PHP40.1bn in Aug 17, 18.1% higher y/y. the Department of Budget and Management (DBM) reported over the weekend. This brought capital expenditures to PHP337.6bn in Jan-Aug 17, 11.9% higher y/y.
• The DBM attributed the growth to the completion of infrastructure projects of the Department of Public Works and Highways, including road improvements, repair and rehabilitation, flood control projects and the improvement or construction of pumping stations, dike and drainage systems.
• Infrastructure projects accounted for the bulk of the government’s capital outlays in Aug 17, which grew 22.6% to PHP51.6bn from PHP42.1bn in 2016.
• The DBM said spending is expected to accelerate in 4Q17 as agencies chase the completion of projects before the year ends and ahead of the closing of books.
• The agency also said a significant amount of subsidies to government-owned and-controlled corporations is set to be released from Sep 17 to Dec 17, while there is an anticipated increase in the utilization of miscellaneous personnel benefits fund and the pension and gratuity fund for government employees.

External Link : http://www.philstar.com/business/2017/10/16/1749109/infra-spending-builds-p40-b-aug