The Department of Budget and Management (DBM) reported an underspending of more than P100 billion in the third quarter of this year, attributing the shortfall primarily to delays and controversies surrounding the flood control projects implemented under various government agencies.
Despite the decline in government spending, DBM Assistant Secretary Romeo Matthew Balanquit noted that economic growth hinged on how the private construction sector responded to corruption issues, adding that the decline in the state’s spending was offset by private expenditure in the second quarter.
‘In fact, what is happening now, based on the third quarter disbursement report in cash operations report, we have an underspending of P157 billion. So that means and that is because of the flood control,’ he told reporters.
Data from the Bureau of the Treasury showed that the national government’s budget deficit narrowed to 9.2 percent to P248.1 billion in September from the P273.3-billion deficit posted in the same month last year.
The decline was primarily driven by a slowdown in the administration’s revenue collection on top of a decrease in the national government’s spending.
Balanquit said the state’s spending will be adjusted in the fourth quarter as they will be able to fast track due to items in the wait list.
From March 28 to May 12, the Commission on Elections imposed a 45-day ban on public works spending. From January to August, the government spending on infrastructure is down by 5.6 percent to P798.4 billion, compared to P845.3 billion in the same period last year.
Balanquit expressed optimism that the private sector would take a more active role in driving economic growth and highlighted the country’s current inflation rate as a positive indicator that could boost household consumption, along with the lower interest rates.
‘That means we’re expecting that the investment, the private sector, have reacted positively in that action of the central bank. But it’s true, on the government side, we might not be able to contribute in the third quarter. But in the fourth quarter, we’ll recover,’ he said.
The DBM official noted that the underspending is expected to be offset by the higher expenditures in the fourth quarter, as the agency aims to meet the programmed full-year disbursement, emphasizing that the administration will never run out of items to fund.
DPWH diverted P50 billion
The Department of Public Works and Highways had diverted at least P50 billion from unprogrammed appropriations in the 2024 national budget, including P30 billion for flood control projects, which Senate President Pro Tempore Panfilo Lacson said was in violation of the government’s infrastructure master plan.
‘This means DPWH officials have become comfortable with funding such projects even if this means violating the government’s master plan,’ Lacson said in Filipino over radio dzBB.