Infrastructure Spending to Rise in 2026, Aligning with Economic Growth Goals

Strategic Insights -

The Philippine government is planning to significantly increase its infrastructure spending in 2026, aiming to fast-track development and support the country's economic growth. According to the Budget of Expenditures and Sources of Financing for fiscal year 2026, the government will allocate P1.558 trillion for infrastructure disbursements, a 3% increase from the P1.512-trillion spending plan in 2025. This allocation represents 5.1% of the country's gross domestic product (GDP), a decrease from the 5.3% target set for 2025 and 5.8% posted in 2024. The government's infrastructure spending will also cover subsidies and equity provided to state-owned corporations, as well as transfers to local government units (LGUs). President Ferdinand R. Marcos Jr. has emphasized the importance of infrastructure development, stating that it will create more livable communities, modernize transportation systems, and address long-standing challenges. The administration's agenda will be supported by the 'Build Better More (BBM) Program,' which will receive P1.556 trillion in 2026.

Key Takeaways:

  • The government will allocate P1.558 trillion for infrastructure disbursements in 2026, a 3% increase from the P1.512-trillion spending plan in 2025.
  • The allocation represents 5.1% of the country's GDP, a decrease from the 5.3% target set for 2025 and 5.8% posted in 2024.
  • The 'Build Better More (BBM) Program' will receive P1.556 trillion in 2026, representing 5% of the country's GDP.
  • The Department of Public Works and Highways (DPWH) will be allotted P881.3 billion, while the Department of Transportation (DOTr) will receive P197.3 billion in 2026.
  • The government will prioritize 54 infrastructure flagship projects, including the Bataan-Cavite Interlink Bridge Project, the Laguna Lakeshore Road Network Project, and the Metro Manila Subway Project Phase I.
  • The Rail Transport Program will be given P124.1 billion to fund key rail transport projects, such as the North-South Commuter Railway System and the Metro Manila Subway Project Phase I.
  • The DOTr's Aviation Infrastructure Program will receive P6.2 billion to develop airports nationwide, while the Maritime Infrastructure Program will get P8.5 billion to finance the improvement of coastal areas and maritime territories.

Statistics:

  • Infrastructure disbursements in 2026: P1.558 trillion
  • Increase in infrastructure spending from 2025: 3%
  • GDP allocation for infrastructure spending in 2026: 5.1%
  • Budget for the Department of Public Works and Highways (DPWH) in 2026: P881.3 billion
  • Budget for the Department of Transportation (DOTr) in 2026: P197.3 billion
  • Number of infrastructure flagship projects in 2026: 54
  • Budget for the Rail Transport Program in 2026: P124.1 billion
  • Budget for the DOTr's Aviation Infrastructure Program in 2026: P6.2 billion
  • Budget for the Maritime Infrastructure Program in 2026: P8.5 billion

Sources:

  • Budget of Expenditures and Sources of Financing for fiscal year 2026
  • Department of Budget and Management (DBM)
  • Office of the President of the Philippines
  • Department of Transportation (DOTr)
  • Department of Public Works and Highways (DPWH)
  • Build Better More (BBM) Program