Arian P.

Blancaflor HUMSS 12-G

Gov’t spending P910B on infrastructure this year

The government has programmed to spend P910 billion in infrastructure
this year and double this amount by 2022 to pave the way for a “golden
age of infrastructure.”
Based on Budget Secretary Benjamin E. Diokno’s presentation at the
Philippine Economic Briefing in Osaka, Japan, last Friday, the
infrastructure program for 2019 would be equivalent to 4.7 percent of
gross domestic product (GDP).
Appropriations for infrastructure will breach the P1-trillion mark in 2020
with P1.22 trillion or 5.7 percent of GDP to be spent on roads, bridges,
airports and railways next year.
Infrastructure expenditures will further increase to P1.54 trillion or 6.6
percent of GDP in 2021 and peak to P1.81 trillion, equivalent to 7
percent of GDP, by 2022.
Last year, the latest Department of Budget and Management data
showed that government spending on infrastructure and other capital
outlays jumped 49.7 percent year-on-year to P728.1 billion as of
November.
Diokno attributed last year’s climb in infrastructure spending to front-
loading of projects in the first six months as the weather was “perfect for
construction.”
Infrastructure outlays as a percentage of GDP rose from 4.5 percent in
2016 to 6.3 percent in 2017 and to the programmed 6.2 percent in 2018.
Last Friday, Diokno said “higher government spending and upgrading of
infrastructure will enhance the Philippine economy’s competitiveness,”
in line with the Duterte administration’s “Build, Build, Build” program.
Under “Build, Build, Build,” the government will roll out 75 flagship
projects, with about half expected to be completed during President
Duterte’s term.
Arian P. Blancaflor HUMSS 12-G

At the Osaka briefing, Finance Secretary Carlos G. Dominguez said the

75 flagship projects included 31 roads and bridges, 12 railway and urban
transport projects, 11 water supply and irrigation projects, six air
transport projects, four water transport projects, four flood management
projects, four power projects as well as three other public infrastructure
projects.
In a separate presentation before the US-Philippines Society board of
directors last week, Socioeconomic Planning Secretary Ernesto M.
Pernia said 44 “Build, Build, Build” projects worth P1.54 trillion were
already in various stages of implementation as of November last year,
while 24 and seven projects were under pre-investment study and for
review, respectively.
Pernia, who also heads the state planning agency National Economic and
Development Authority, said the updated Public Investment Program
(PIP) 2017-2022 aimed to implement a bigger 9,581 programs and
projects worth a total of P9.26 trillion.
Infrastructure accounted for the bulk or 68.9 percent of the total
investment requirement, with P6.38 trillion worth of projects under the
PIP. —BEN O. DE VERA