Government forms task force to step up spendings

The government has formed an inter-agency task force to tackle bottlenecks and gaps in the country’s infrastructure development as infrastructure spending picks up, according to the National Economic and Development Authority (Neda).

Socioeconomic Planning Secretary Ernesto Pernia said the Project Facilitation, Monitoring and Innovation (PFMI) Task Force, composed of economic and major infrastructure agencies will institute policies and processes to address issues in the project cycle of flagship projects of the Duterte administration.

The PFMI Task Force’s Steering Committee is composed of Neda as chair, the Department of Finance (DoF) as co-chair, Department of Budget and Management (DBM), Office of the Cabinet Secretary, Department of Public Works and Highways (DPWH), Department of Transportation (DoTr), and the Bases Conversion and Development Authority (BCDA).

Pernia added that Neda is discussing with oversight and key implementing agencies the enhancement of the Neda Board and Investment Coordination Committee (ICC) -project screening guidelines.

“As part of a more efficient planning and programming process of the government, programs, activities, and projects for inclusion in the country’s Public Investment Program must be examined early on and screened through a more rational and methodical process,” Pernia said.

The final version of the guidelines would help the government identify the appropriate procurement scheme favorable to both government and the public.

The guidelines will help government address, minimize, if not totally avoid, issues in implementing projects that can be attributed to poor project planning and programming.

Pernia also underscored the need to amend the two decade-old Build-Operate-Transfer (BOT) Law and its implementing rules and regulations.

“(It is) among our priority regulations, so as to raise the efficacy of private sector participation and to keep policies attuned to the changing business environment,” he added.

Among the proposed amendments to the BOT Law are: new schemes such as joint ventures; adoption of new approaches on unsolicited proposals to ensure transparency and competition, without sacrificing speed; exemption from payment of real property tax for Projects of National Significance; and other measures to further improve the Private-Public Partnership (PPP) procurement process.

Government disbursements in the third quarter reached P683.7 billion, up by nearly P45 billion or seven percent from the level for the same period in 2016 reflecting huge investments in infrastructure and human capital development.

Infrastructure and other capital outlays reached P142.1 billion in the third quarter, posting a 15.4 percent growth year-on-year.

The growth is faster when compared to the 12.2 percent and 5.9 percent expansion recorded in first and second quarters, respectively, as a result of faster project implementation by the DPWH.

Meanwhile, maintenance expenditures amounted to P117..2 billion, increasing by 8.2 percent or P8.9 billion, on account of higher spending for education, health and social protection programs.

The growth of maintenance spending sustains the significant rebound made in the second quarter with a 5.1 percent increase from a 2.2 percent contraction in the first quarter.

Year to date disbursements stand at P2.015 trillion, P154.1 billion or 8.3 percent more than the level for the same period in 2016.

The growth is credited to higher personnel services expense, huge infrastructure and other capital spending, and substantial transfers to local government units.

However, disbursements were lower when compared to the P801.1 billion program for the third quarter by P117.4 billion or 14.7 percent mainly on account of the lower-than-expected personnel services expenditures for the period; timing for the release of subsidy and partial billings for some programs; postponement of the Sangguniang Kabataan and Barangay elections; and savings in interest payments, and net lending due to repayment from the Power Sector Assets and Liabilities Management Corp.

As of date, spending fell short of the P2.138 trillion program by P123.3 billion or 5.8 percent.

Savings in interest payments and minimal availment for tax subsidies and net lending accounted for P45.4 billion or about 37.0 percent of the underspending for the period.

The DBM said in a statement that it should be noted that 2016 is an election year and normally disbursements are higher during this period.

On the other hand, infrastructure and other capital spending exceeded the P374.4 billion program for the first nine months of the year by P16.8 billion or 4.5 percent, cutting down the underspending recorded in the other expense items.

“We will continue to exert our best efforts to reach our full year target of P2.909 trillion,” Budget Secretary Benjamin Diokno said.

Disbursements are expected to pick up in the fourth quarter anticipating further increases in infrastructure and other capital outlays; maintenance expenditures from operating expenses of the DepEd and the DSWD; and personnel services, in view of the release of the year-end bonus and cash gift, pension and retirement benefits, as well as Performance-Based Bonus for some agencies whose validation are currently ongoing. RIZA LOZADA