By Aubrey Rose A. Inosante, Reporter
STATE SPENDING on infrastructure rose by 23.1% in the primary two months of 2025, as the federal government ramped up disbursements for public works projects ahead of the election ban, the Department of Budget and Management (DBM) said.
In its latest disbursement report, the DBM said spending on infrastructure and other capital outlays jumped by 23.1% to P148.3 billion as of end-February from P120.5 billion in the identical period last 12 months.
“The robust infrastructure spending outturn was mainly credited to the disbursement performance of the Department of Public Works and Highways (DPWH),” it said.
The DPWH accomplished carryover infrastructure projects, in addition to made payments for right-of-way settlements and emergency and disaster-related civil works. It also logged higher contractor billings and expedited the processing of accounts payable.
The Budget department said among the DPWH projects included construction and maintenance of roads, bridges, flood control structures and multi-purpose buildings.
“Moreover, the direct payments made by development partners for progress billings of ongoing foreign-assisted projects of the Department of Transportation, similar to the North-South Commuter Extension Project, South Commuter Railway Project, Davao Public Transport Modernization Project, in addition to the DPWH for its Pasig-Marikina River Channel Improvement Project, helped sustain the strong infrastructure and other capital expenditure performance in the course of the first two months of the 12 months,” it said.
Data from the DBM showed overall infrastructure disbursements, which include infrastructure components of subsidy/equity to government corporations and transfers to local government units, jumped by 19.3% to P182.9 billion within the January-to-February period from P153.4 billion a 12 months ago.
Total NG disbursements as of end-February jumped by 13.8% to P822 billion, mainly as a result of faster infrastructure spending and allotments to local government units.
“Disbursements for March 2025 likely improved significantly as line agencies were expected to have utilized their remaining money allocations which were fully credited in the course of the first quarter of the 12 months. Non-utilization would let the money allocations lapse on the last working day of the quarter,” the DBM said.
It noted that agencies were expected to have accelerated disbursements ahead of the election ban on the discharge of public funds that began on March 28.
“Spending for April 2025 is predicted to temporarily decelerate because the election-related prohibition might impede the implementation of some programs and projects,” the DBM said.
Nevertheless, the department noted that disbursements will likely pick up within the latter a part of May to June after the election ban is lifted.
The midterm elections are scheduled for May 12.
The DBM noted that Commission on Elections had exempted some key infrastructure projects, in addition to some major health, housing, agriculture, education and labor sector programs, were exempted from the election ban.
Rizal Industrial Banking Corp. Chief Economist Michael L. Ricafort noted the federal government accelerated the progress of infrastructure projects ahead of the election ban.
“Completions would function metric of achievements especially by incumbent elected officials who will run again and for the groups/parties that they represent,” he said in a Viber message.
Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc. said the expected lower infrastructure spending in April is merely “transitory.”
“I see infrastructure spending growing faster this 12 months as (interest) rates are expected to go down, higher fiscal space, and financial efforts for growth,” he told BusinessWorld via Viber on Monday.
Mr. Erece said the upper spending can even boost “fiscal efforts to support economic growth amid global uncertainty and faltering demand.”
The federal government’s infrastructure program for this 12 months is about at P1.538 trillion, akin to 5.4% of gross domestic product.
