Accelerate spending for small infrastructure projects

The executive branch is strengthening the absorptive capacity of infrastructure agencies. Work programs and procurement plans are being prepared under tight deadlines, and contracts should be awarded early this year. Portions of the budget will be realigned from projects experiencing bottlenecks such as right-of-way problems, and those without detailed engineering plans. New projects that do not have Investment Coordination Committee/NEDA Board approval may also be downscaled or deferred.

Agencies will front-load resources for full and quick spending, focusing on projects that are quick-disbursing, high impact and labor intensive. Examples include accessibility facilities for the disabled and irrigation facilities. The economic managers themselves will closely monitor project implementation.
Implementing agencies will spend 60 to 80 percent or PhP84.3 billion to PhP112.3 billion (US$1.8 billion to US$2.4 billion) of the productive portion of the 2009 budget during the first semester.

Agencies have begun to spell out their commitments to obligate at least 60 percent of their spending program into the first semester of 2009.

For its part, the Department of Budget and Management will release the special allotment release order (SARO) in the first quarter of the year.

For more information on the national budget, please contact the Department of Budget and Management.

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