Gov’t infra spending surged 23.1% as of Feb 2025

Government spending on public infrastructure projects rose in the first two months of the year, although a slowdown is expected from March due to the elections. NIÑO JESUS ORBETA/INQUIRER FILE PHOTO

MANILA, Philippines — Government spending on infrastructure surged by 23.1 percent in the first two months of 2025, but the Department of Budget and Management (DBM) said the election-related spending ban could slow disbursements in the next few months.

Latest data from the DBM showed direct government spending on infrastructure had amounted to P148.3 billion in the January-February period, bigger by P27.8 billion compared to the year-ago amount of P120.5 billion.

READ: Govt swings back to budget deficit in February on infra spending

That formed part of the state’s total capital outlay amounting to P187 billion, a 7-percent increase year-on-year.

DPWH

Explaining the “robust” increase in infrastructure spending, the DBM credited the disbursement performance of the Department of Public Works and Highways (DPWH), whose projects included the construction and/or maintenance of roads, bridges, flood control structures and multi-purpose buildings.

The DPWH was able to complete carryover infrastructure projects and pay emergency and disaster-related civil works, the DBM said. The department also finished right-of-way settlements and expedited the processing of accounts payable.

Direct payments made by development partners like World Bank and the Asian Development Bank for foreign-assisted projects also helped sustain the strong infrastructure disbursements during the first two months of the year.

Slowdown

Moving forward, DBM said government spending in March likely improved as government agencies were expected to have used the remaining cash allocations that had been fully credited during the first quarter of the year.

But the situation might be different in April.

“Spending for April 2025 is expected to temporarily slow down as the election-related prohibition might impede the implementation of some programs and projects,” the budget department said.

“Nevertheless, as observed or experienced in similar election periods, disbursement are seen to pick up strongly toward the latter part of May to June after the election ban is lifted,” it added.

Dissecting the rest of the DBM’s report, capital transfers to local government units (LGUs) to fund their respective infrastructure undertakings fell by 28.8 percent to P38.6 billion due to “variations” in the timing of releases of LGUs shares of national taxes.

No amount was given to state-owned corporations as equity for their projects in the first two months of the year.

The Marcos administration is targeting to bring infrastructure spending to P2.1 trillion, or 5.8 percent of gross domestic product, by the end of its term in 2028.