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Local government

Government Spending on Infrastructure Sees Significant Increase in Q1

Strategic Insights

— 1 min read

The Department of Budget and Management (DBM) reports that government spending on infrastructure has risen by nearly a fifth to P317.5 billion in the first quarter of 2025, marking a 19.2 percent increase from the same period in 2024. This uptick in allocations is largely attributed to the Department of Public Works and Highways' (DPWH) aggressive implementation of infrastructure projects, which include construction of bridges, flood control systems, health facilities, office buildings, and road rehabilitation works. The increased spending is seen as a positive signal of the government's commitment to growth-driven public investment, and experts believe it could contribute significantly to the country's economic growth, including job creation and long-term competitiveness.

Key Takeaways:

  • Infrastructure disbursements grew by 19.2 percent in the first quarter of 2025, reaching P317.5 billion, up from P266.3 billion in the same period in 2024.
  • Public construction expenditures increased by 8.2 percent, while infrastructure and other capital outlays expanded by 20.8 percent to P261.8 billion in the first quarter from P216.8 billion a year ago.
  • The DBM pointed to increased payments for process billings and accounts payables, right-of-way settlements, release of final payments, and retention releases for completed projects as key drivers of the increased spending.
  • The budget department emphasized the importance of flagship projects under the administration's "Build Better More Program," which are gaining traction and addressing procurement and implementation bottlenecks.
  • Senior research fellow John Paolo Rivera noted that infrastructure investment is a critical fiscal tool, especially in a period when private investment and exports may face global headwinds.

Statistics:

  • Infrastructure disbursements grew by 19.2 percent to P317.5 billion in Q1 2025.
  • Public construction expenditures increased by 8.2 percent in Q1 2025.
  • Infrastructure and other capital outlays expanded by 20.8 percent to P261.8 billion in Q1 2025.
  • Government spending on infrastructure increased by 22.4 percent to P1.477 trillion in the first quarter of 2025.
  • Maintenance and other operating expenses soared by 63.1 percent to P323.6 billion in Q1 2025.
  • Interest payments rose 24.9 percent to P241 billion in Q1 2025.

Sources:

  • Department of Budget and Management (DBM)
  • Philippine Institute for Development Studies (John Paolo Rivera, senior research fellow)
  • Philippine Economic News (government reports and data)

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