MANILA, Philippines—The Department of Budget and Management (DBM) declared a 6.5 percent increase in the country’s inafrastructure spending in June 2025 after the election ban ended in early May.
Based on the latest disbursement report on Thursday, Aug. 21, the DBM noted that expenditure on infrastructure and other capital rose to P148.8 billion in June from P139.7 billion in the same month last year.
“This was largely attributed to the recovery of the Department of Public Works and Highways (DPWH)’s spending performance following a two-month decline in April and May amid the election ban,” the DBM said.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that increased infrastructure spending is essential for a country's economic growth.
“[This will translate to] more inclusive economic growth and development, as better infrastructure boosts the economy’s productivity, as well as helps attract more foreign tourists and more foreign investments and locators,” Ricafort said in a Viber message on Thursday.
During the initial six months of 2025, total disbursements for infrastructure and capital outlays increased by 1.4 percent, rising to P620.2 billion compared to P611.8 billion in the corresponding period last year.
This increase was significantly less than a percent, or P800 million less than the P62 billion plan for the first half of the year.
“Although infrastructure expenditures posted a notable 20.8 percent (P45 billion) annual growth in the first quarter this year, it contracted by 9.3 percent (P36.6 billion) in the second quarter amid the election-related prohibition on public spending covering the entire month of April up to the first two weeks of May,” the DBM said.
According to the 2026 Budget of Expenditures and Sources, the government established its total infrastructure spending plan at P1.51 trillion, representing 5.3 percent of the gross domestic product.
Expected expenditure catalysts for the forthcoming months include progress billings from various completed or largely completed road and transportation infrastructure projects and allocations for the defense modernization program.
