Gov't infra spending surges 17% to P137 Billion in September

The Philippine government ramped up its infrastructure spending in September, reaching a total of P137.1 billion, a 16.9% increase compared to P117.3 billion during the same period in 2023, according to a report from the Department of Budget and Management (DBM). This marks a significant boost in the government's efforts to accelerate its infrastructure development agenda.

The increase in spending was primarily driven by robust investments in key areas such as public works, transportation, and national defense, the DBM said. Notably, road and bridge projects spearheaded by the Department of Public Works and Highways (DPWH), foreign-assisted transportation projects by the Department of Transportation (DOTr), and the Department of National Defense’s (DND) modernization efforts were among the major contributors to the uptick.

The DPWH continued to push forward with ongoing infrastructure projects, such as the construction and repair of roads and bridges, aimed at improving connectivity and mobility across the country. Meanwhile, the DOTr made progress in its foreign-assisted rail projects, which include key railway systems aimed at improving public transportation infrastructure. Additionally, the DND's modernization projects contributed to the overall surge in spending, focused on enhancing the capabilities of the country's defense sector.

For the first nine months of 2024, the government’s infrastructure and capital outlays totaled P982.4 billion, reflecting a 14.6% increase from P857.6 billion in the same period last year. The DPWH's ongoing and carry-over projects were significant factors in this growth, along with the direct payments made for the DOTr's rail initiatives supported by foreign funding.

The DBM also highlighted that the total government disbursements for the first three quarters of the year exceeded the programmed budget by P46 billion, or 1.1%. This indicates that the government has been able to effectively utilize its resources, underscoring the fiscal discipline and strategic allocation of funds in infrastructure development.

The government’s infrastructure program for 2024 is set at P1.472 trillion, which is 5.6% of the country’s projected gross domestic product (GDP). This is a clear reflection of the administration's focus on achieving inclusive and sustainable growth through infrastructure development. The planned spending aligns with the government’s "Build, Build, Build" program, which aims to improve national and regional infrastructure, boost economic productivity, and create job opportunities.

The surge in infrastructure spending is seen as a crucial step in stimulating economic growth, addressing long-standing infrastructure gaps, and improving the overall business climate in the country. It also positions the Philippines for better resilience to future challenges, particularly in areas such as disaster response and transportation efficiency.