Govt infrastructure spending drops 22% in August amid project validation

Government infrastructure spending declined by nearly 22% in August, amounting to P84.9 billion, down from P108.6 billion last year.

The Department of Budget and Management (DBM) attributes this downturn to the ongoing validation of project implementation, quality, and completion by the Department of Public Works and Highways (DPWH) nationwide.

This validation process has delayed contractors' progress billings and the processing of payments, leading to slower disbursement of funds.

Adverse weather conditions in August also affected the progress of various infrastructure projects.

The sluggish pace of disbursements in August marked the lowest level of government infrastructure spending since April, following the Commission on Elections' ban on public works spending earlier in the year.