The Philippines: Infrastructure spending marginally exceeds 1H21 target

• LOOSER quarantine restrictions that allowed construction activities to resume helped the government surpass its infrastructure spending target by nearly 2% in 1H21.
• Data from the Department of Budget and Management (DBM) showed infrastructure and other capital outlays reached PHP426.6bn in 1H21, exceeding its PHP420bn goal by 1.7%. Infrastructure spending surged 43% y/y from PHP298bn.
• In Jun 21 alone, infrastructure spending rose by 50.4% y/y to PHP94.4bn from PHP62.8bn, and by 20% m/m from the PHP78.9bn recorded in May 21.
• DBM attributed the higher spending to DPWH’s infrastructure program to construct and repair roads, bridges and flood-control systems, as well as the Transportation department’s sustained rollout of various foreign-assisted projects.
• In 2Q21, infrastructure spending jumped by 63% to PHP231.4bn from PHP142bn in 2Q20. This also exceeded the PHP224.4bn target by 3%.
• Above-target spending on infrastructure should be a “good sign” for the economy as implementing agencies take advantage of good weather to fast-track construction works, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said via e-mail on 27 Jul 21.
• The government has set a PHP1.02tr spending plan for infrastructure in 2021.
• The government plans to spend PHP229.54bn on infrastructure in 3Q21 and another PHP221.6bn in 4Q21.
• It is also noted that data indicates that the construction materials retail price index (CMRPI) grew 1.2% in Jun 21, unchanged from the rate recorded in May 21 as well as that in Jun 20.

External Link : https://www.bworldonline.com/june-retail-price-growth-of-building-materials-steadies-in-capital-region/

External Link : https://www.bworldonline.com/infrastructure-spending-exceeds-first-half-target/