Frontloading boost eyed as DBM releases half of national budget

Around half of this year’s budget has already been released by the government in a bid to boost the economy. The Budget department has already disbursed P800 billion of the P1.645-trillion national budget, frontloading releases to speed up projects and to take advantage of the good weather. "President [Benigno S. C.] Aquino [III] had instructed us to frontload releases and accelerate project implementation so we can get the economy perked up early in the year," Budget Secretary Florencio B. Abad said in a statement. The frontloaded releases are expected to drive up government expenditures for the first quarter, Finance Assistant Secretary Teresa S. Habitan told BusinessWorld. She assured, however, that these had been taken into account when this year’s fiscal targets were set. The government expects a P112-billion deficit for the first quarter. It had notched an P8.1-billion shortfall as of end-February. The Budget department said total of P618 billion for state offices had been released as of March, 81% of the amount programmed for the year. This included 91% of the personal services budget, which pays for the salaries, allowances and benefits of government personnel; 55% of the budget for capital outlay programs, which covers the regular operating requirements of government offices, including the implementation of ongoing priority programs; and 82% of the amount allocated for maintenance and other operating expenditures. "These frontloaded releases should enable our departments and agencies to be responsive in addressing the needs of our citizens, especially the poor and the marginalized," Mr. Abad said. Releases from Special Purpose Funds also reached P12 billion in the first quarter. Another P157.5 billion was released in automatic appropriations, mostly for Internal Revenue Allotments (P71.7 billion). The government also used P59 billion for interest rate payments and net lending and contributed P21 billion to the retirement and life insurance premiums of its employees. Other budgetary releases amounted to P12.8 billion, from the Unprogrammed Fund (P1.2 billion), continuing appropriations from 2010 (P4.1 billion) and other automatic appropriations (P7.4 billion), the Budget department said. Spending during the first semester is expected to increase further once key departments with huge budgetary balances for this year submit their program of allocations, Mr. Abad said. "We anticipate these departments’ submission of special budget requests, together with the necessary documentary requirements, at the soonest possible time. On our part, we commit to facilitate the expedient release of these funds," he said. -- BusinessWorld