Philippines Infrastructure Spending Hits P1 Trillion Mark in First 11 Months of 2023

MANILA — The Philippine government’s expenditures on infrastructure and capital outlays surged to P1.02 trillion in the January to November period of 2023, marking a significant increase from the previous year.

According to Philippines News Agency, the spending in the first 11 months of 2023 represents an 18.5 percent or P159.8 billion increase over the P861.8 billion recorded during the same period in 2022. Pangandaman emphasized the crucial role of government spending in bolstering national economic growth and urged government agencies to efficiently execute their programs and projects as planned in the annual budget.

The increase in infrastructure and capital outlays has been largely attributed to the Department of Public Works and Highways (DPWH), which disbursed funds for various priority projects, including the construction, rehabilitation, renovation, repair, and improvement of roads, bridges, and flood control structures. Additionally, the Department of Transportation (DOTr) significantly contributed to the growth in infrastructure spending through the implementation of various rail transport projects assisted by foreign entities.

Looking ahead, the government plans to continue its infrastructure development through the “Build, Better, More” program, with P1.510 trillion allocated for total infrastructure outlays under the 2024 national budget. This allocation represents a P180 billion increase from the P1.330 trillion allotted in the 2023 General Appropriations Act.

Under President Bongbong Marcos’s guidance, the government aims to bolster the “Build, Better, More” program, which seeks to expand the country’s infrastructure network by developing road, rail, mass transport, and flood control projects, particularly in remote municipalities. This initiative aligns with the President’s vision for a “Bagong Pilipinas” or New Philippines.

Pangandaman highlighted the commitment to providing the necessary budget to support these infrastructure initiatives and called on all government agencies to efficiently and promptly utilize their infrastructure budgets. The goal is to ensure that every peso in the national budget is spent effectively to benefit the country’s economy and the Filipino people.

The 2024 infrastructure allocation, equivalent to 5.5 percent of the country’s projected Gross Domestic Product (GDP) for the year, falls within the government’s target range of 5.0 to 6.0 percent. This includes significant budget allocations for the DOTr and DPWH, amounting to P26.580 billion and P981.999 billion, respectively, underscoring the government’s commitment to extensive infrastructure development.