go through Aubrey Rose A. Inosante, reporter
The Department of Budget and Management (DBM) said state spending on infrastructure increased by 23.1% in the first two months of 2025 as the government increased payments for public works projects ahead of the election ban.
DBM said in its latest spending report that as of the end of February, expenditure on infrastructure and other capital expenditures jumped 23.1% to 1.483 billion p148.3 billion from the same period last year.
“Strong infrastructure spending exceeded that, thanks mainly to public works and payment performance on highways (DPWH),” it said.
DPWH completed the carry-over infrastructure project and paid for rights of way and emergency situations and disaster-related civil works. It also records higher contractor bills and speeds up the processing of accounts payable.
The Budget Department said some DPWH projects include the construction and maintenance of roads, bridges, flood control structures and multi-functional buildings.
“Furthermore, the direct payments made by development partners for progress billings of ongoing foreign-assisted projects of the Department of Transportation, such as the North-South Commuter Extension Project, South Commuter Railway Project, Davao Public Transport Modernization Project, as well as the DPWH for its Pasig-Marikina River Channel Improvement Project, helped sustain the strong infrastructure and other capital expenditure performance during the first two months of the year,” it said.
Overall infrastructure spending includes infrastructure components of subsidies/interests to government companies and infrastructure transfers to local government departments, jumping from $15.4 billion a year ago to $15.9 billion.
Total spending for NG jumped 13.8% to PPE 822 million by the end of February, mainly due to faster infrastructure spending and allocation to local government departments.
“Payments in March 2025 are likely to be significantly improved as line agencies are expected to utilize their remaining cash allocations, which have been fully judged in the first quarter of this year. Not using them will make the cash allocation fail on the last working day of the quarter,” DBM said.
It noted that institutions are expected to speed up payments before the election ban is issued on public funds that will begin on March 28.
“Spensions are expected to temporarily slow down in April 2025 as election-related bans may hinder the implementation of certain programs and projects,” DBM said.
However, the department notes that payments may be collected in late May to late June after the election ban is lifted.
The midterm elections are scheduled to be held on May 12.
The DBM noted that the Election Commission has exempted some major infrastructure projects, as well as some major health, housing, agriculture, education and labor sector programs, and exempted the election ban.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., noted that the government accelerated progress in infrastructure projects ahead of the election ban.
“Completion will be an indicator of achievement, especially those run by current elected officials and those of the groups/gatherings they represent,” he said in a Viber message.
Oikonomia Advisory and Research, Inc. Reinielle Matt M. Erece, an economist, said the expected low infrastructure spending in April is only “short-term”.
“I think that infrastructure spending is growing faster this year as[interest rates]are expected to fall, fiscal space and fiscal growth efforts,” he told him. BusinessWorld Passed by Viber on Monday.
Higher spending could also promote “amid global uncertainty and faltering demand, to support economic growth.” Mr Erece said higher spending could also promote “fiscal efforts to support economic growth amid global uncertainty and staggering demand.”
The government's infrastructure plan this year is set to P1.538 trillion P1.538 trillion, equivalent to 5.4% of GDP.
