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Louise Maureen Simeon - The Philippine Star
May 3, 2025 | 12:00am
Workers are seen performing their duties at a constructi site in Taguig on February 7, 2024.
STAR / Ernie Penaredondo
MANILA, Philippines — The government increased its infrastructure spending by 23 percent to reach P148 billion from January to February on the back of higher disbursements for road projects, the Department of Budget and Management (DBM) said.
Based on the latest national government disbursement performance report of the DBM, state infrastructure expenditure and other capital outlays rose by 23 percent to P148.3 billion from January to February compared to P120.5 billion in the same period last year.
The DBM said the infrastructure spending performance for the two-month period was attributed to the higher disbursements recorded by the Department of Public Works and Highways (DPWH).
In particular, the increase was due to the completion of carryover infrastructure projects, payments for emergency and disaster-related civil works and right-of-way settlements.
The DBM also attributed the highter spending to the increased volume of contractor billings and the expedited processing of accounts payables and enhanced coordination between the DPWH and implementing offices.
Some of the projects of the DPWH included the construction and maintenance of roads, bridges, flood control structures and multi-purpose buildings.
Similarly, the DBM said the direct payments made by development partners for progress billings of ongoing foreign-assisted projects of the Department of Transportation helped sustain the strong infrastructure and other capital expenditure performance from January to February.
Meanwhile, overall government spending for the two-month period reached P822 billion, rising by 13.8 percent from the P722.5 billion a year ago.
Apart from infrastructure, personnel services expenditures inched up by 1.3 percent to P189.3 billion due to the implementation of the second tranche of the salary adjustments of state workers.
This was only slightly tempered by outstanding checks as well as timing of payments in some personnel-heavy departments and agencies.
Interest payments also jumped by 25.3 percent to P152.9 billion due to new and additional issuances of fixed rate Treasury bonds and higher volume of Treasury bills.
Allotment to local government units grew by 19 percent to P149.5 billion largely because of higher national tax allotment.
The tax revenue base, from which the tax allotment shares of LGUs this year are determined, was the actual tax collections in 2022— when revenues continued to recover from the pandemic.
The government likewise recorded higher maintenance and other operating expenses at P122.3 billion due to assistance and subsidies for the health and social services sectors, as well as the training of poll workers for the 2025 midterm elections.
Tax expenditures also surged to P9.2 billion, largely on account of the P7.5-billion tax subsidy granted to the Manila International Airport Authority for corporate income tax liabilities.
As of end-February, the remaining program balance amounts to P2.089 trillion or 33 percent of the record P6.326 trillion budget for 2025.
The bulk of the remaining releases is for the succeeding requirements of interest payments, agency-specific budgets and special purpose funds.
