International road expendituretire Rebound in June Resuming ELEC’s public works projectsThe ban was lifted in early May Budget Department and Management (DBM) said.
DBM reported spending on infrastructure and other capital expenditures rose 6.5% to Phillips 148.8 billion, in its latest spending report on Thursday. The same month last year.
In a month, it was 20.2% higher than pesos 123.8 billion.
This is after a 9.2% drop in May month.
“This is largely attributed to the expenditure performance of DPWH (Public Works and Highways Department) after a two-month decline in April and May In the election ban,” it said.
Electrical CommissionTions’ 45-day ban on public works spending began on March 28 and ended with the May 12 election.
In June, DPWH resumed payments for mobilization fees and paid for newly granted projects. It also addresses outstanding obligations from previous years.
However, DBM noted that the pace of infrastructure spending was tempered by the fundamental effects of the armed forces revised by the Ministry of Defense revised by the Philippines Modernization Plan last June.
Since 2012, the Philippines has been improving its military capabilities under a $35 billion military modernization program to cope with the increasing tensions in the South China Sea.
DBM said it is expected to issue large-scale air tickets for infrastructure in the second half of the year.
Budget Secretary Amenah F. Pangandaman earlier explained that it is expected to be in late May to late June after lifting the 45-day election ban.
Rizal Commercial Banking Corp. chief economist Michael L. Ricafort said the increase in infrastructure spending is crucial to economic growth.
“(This will translate into) more inclusive economic growth and development as better infrastructure improves the productivity of the economy and helps attract more foreign tourists and more foreign investors/positioners,” Mr Ricafort said in a Viber message on Thursday.
In the first half of 2025, total infrastructure and capital expenditures reached 1.4% from the same period last year, total infrastructure and capital expenditures reached PES 620.2 billion.
This is 0.1% or P800 million of the first semester P62.1 billion program.
“Although infrastructure spending achieved a significant 20.8% (4.5 billion) year increase in annual growth in the first quarter of this year, 9.3% (36.6 billion pesos) were signed in the second quarter, while election-related bans were signed in the public spending throughout the first two weeks from April to May.”
Meanwhile, overall infrastructure expenditure, including the infrastructure components of subsidies or interests to government companies and the infrastructure transferred to local government departments, was Phillips 720.3 billion between January and June, the same as Phillips 720.3 billion.
It also exceeded the overall infrastructure expenditure plan for P7.118 billion in the first half of the year.
DBM said the growth of infrastructure to local government departments, especially its development funds, equals 20% of the national tax allocation, is offset by infrastructure activities implemented by lower national governments and reduces subsidies to state agencies such as the National Irrigation Administration (NIA).
Subsidies provided to state-owned companies were 7.45 billion p7.45 billion shares in June, compared with P10.16 billion in the same period last year.
Budget support for NIA fell to 68.21% from P7.52 billion in the same period in 2024 to P7.52 billion.
It added: “Nevertheless, total infrastructure spending in the first semester represents 5.3% of GDP (gross domestic product), which is consistent with the full-year target for the year.”
According to the expenditure and resource budget for 2026, the government set its annual infrastructure expenditure plan at P1.51 trillion P1.51 trillion, equivalent to 5.3% of GDP.
In the coming months, DBM said it is expected to increase its allocation requests for plans, activities and projects in the second semester, as the implementation of activities will normalize post-election bans.
“These may also include unused cash allocations in the second quarter, which the line agency can still request in the second semester so that they can process payments and pay suppliers or contractors completed and delivered goods or services to suppliers or contractors,” it said.
Among the expected spending drivers in the following months were progress bills from multiple completed or partially completed road and transportation infrastructure projects and the issuance of defense modernization plans.
“Infrastructure spending increases by about 5%-6% of GDP in the next few years, which will also lead to sustained growth in infrastructure spending in recent years,” Mr Ricafort said. Aubrey Rose A. Inosante
