Gov’t Steps Up Build Better More with P1.51T Infra Program

The government is set to spend nearly P420 billion on public infrastructure in the third quarter of 2025, the highest quarterly disbursement this year, even as allegations of wasteful and fraudulent flood control projects remain under scrutiny.

Data from the Development Budget Coordination Committee (DBCC) showed that infrastructure disbursements will reach P419.9 billion from July to September, exceeding the P317.5 billion recorded in the first quarter and P400.5 billion in the second quarter. For the fourth quarter, P374.9 billion has been allotted.

This makes the third-quarter figure the second-highest quarterly allotment on record, next only to the P421.3 billion programmed in the second quarter of 2024.

Overall, the government earmarked P1.51 trillion for infrastructure development this year, equivalent to 5.3 percent of gross domestic product (GDP). The spending plan includes national government projects, infrastructure components of subsidies to state-run firms, and transfers to local government units.

Budget Secretary and DBCC Co-Chair Amenah F. Pangandaman assured that funding for foreign-assisted projects, including the government’s counterpart financing, has already been incorporated into the 2026 budget proposal. Next year’s allocation for foreign-assisted projects is expected to rise sharply to P283.3 billion, more than four times this year’s P66 billion.

Pangandaman also highlighted the need to accelerate right-of-way acquisitions, which are often cited as bottlenecks in infrastructure rollout. The proposed 2026 budget includes P4 billion for the Public-Private Partnership (PPP) Strategic Support Fund to cover expenses for land acquisition and titling.

The ramp-up in infrastructure disbursements coincides with the DBCC’s highest-ever quarterly spending program of P1.6 trillion for July to September. By comparison, disbursements hit P1.44 trillion in the first quarter and are projected at P1.59 trillion and P1.44 trillion in the second and fourth quarters, respectively.

The Marcos Jr. administration’s flagship “Build Better More” program is poised to further expand next year, with P1.56 trillion in infrastructure spending proposed under the 2026 national budget. This will increase to P1.69 trillion in 2027 and more than P1.9 trillion by 2028.

While government spending continues to rise, revenues are expected to grow at a slower pace. Total collections are projected at P4.52 trillion this year, or 15.9 percent of GDP, leaving the budget deficit at P1.56 trillion by end-2025, equivalent to 5.5 percent of GDP.