August YoY spending rises 13.9 percent versus January to August 9.8 percent


National government disbursements showed an uptick for August 2017 of 13.9 percent, year on year, while spending on January to August hit 9.8 percent. The growth in spending is seen to boost the government’s economic agenda and promote the swift delivery of public services.


The Department of Budget and Management said  state spending totaled P201.6 billion in August 2017, up from P177 billion last year. The growth of capital outlays (CO) paced the robust spending in August as it rose by 22.6 percent to reach P51.6 billion. Meanwhile, current operating expenditures (COE) increased by 10.3 percent to reach P149.9 billion.


The year-to-date figures also remain to be firm as spending from January to August of 2017 reached P1.78 trillion, a 9.8- percent growth for the comparative period in 2016. This was driven by the expansion of CO and COE, which posted growth rates of 11.5 percent and 9.6 percent, respectively.


August spending got a significant boost from infrastructure and other capital expenditures (IOCE) that surged by 18.1 percent because of the infrastructure projects of the DPWH (road improvement works; repair and rehabilitation, including flood control projects; construction and improvement of pumping stations, dike, and drainage systems, etc.) and capital outlay projects of the education department (repair and rehabilitation of school facilities) and the health department (land outlays for health facilities and purchase of hospital equipment).


Maintenance expenditures also grew by 18.4 percent on account of the operating requirements of DepEd schools and DOH hospitals nationwide, and the implementation of social protection programs by the Department of Social Welfare and Development.


Personnel Services rose by 8.7 percent due to the higher base pay of civilian government employees by virtue of the second tranche implementation of EO 201 s. 2016, and the increase in allowances of military and uniformed personnel.


Some P426.7 billion of the P3.35 trillion obligation program for FY 2017 is still available for release to the line agencies for the remaining four months of the year. Of this amount, P236.8 billion refers to allocations lodged in Special Purpose Funds. Most, if not all, of this amount is expected to be released before the end of the year to fulfill budgetary requirements in government subsidies, the release of Performance-Based Bonus, among other purposes.


Looking ahead, government spending remains to be robust in the near-term. “Disbursements will continue to be buoyed by higher spending requirements of line agencies in the succeeding months given the acceleration of program or project implementation as we approach the year end, especially so, with the one-year validity of the 2017 appropriations,” explained Budget Secretary Benjamin Diokno. “We are optimistic that we will approach our full year target of P2.909 trillion and will continue to exert our best efforts to reach our goals. This administration is committed to address the persistent underspending issues, which have led to the slow delivery of public services in the past.”


The full report on the National Government Disbursement Performance can be accessed via To know more about the Department of Budget and Management, visit





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Wednesday, 21 February 2018
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