The Department of Budget and Management (DBM) said spending for infrastructure for the year is on track as government works to hit growth targets.
The DBM, however, said the proposed infrastructure budget for next year is a bit lower than this year.
In a statement, DBM Secretary Amenah Pangandaman said infrastructure outlay under the 2024 General Appropriations Act (GAA) has an allocation of P1.51 trillion, equivalent to 5.7 percent of the country’s gross domestic product (GDP).
“This is consistent with our Medium Term Fiscal Framework to achieve our growth targets, and is well within the national government’s target for infrastructure spending at 5 to 6 percent of GDP,” said Pangandaman, adding infrastructure remains a priority of the government.
” This allocation is higher by 13.5 percent compared to the FY 2023 GAA level of P1.330 trillion. This reflects our solid commitment to advance the Build, Better, More program,” Pangandaman said.
The allocation for infrastructure development aims to continue increasing access to basic services, strengthening industry linkages, and expanding connectivity nationwide through programs, activities, and projects in the infrastructure, transportation, and digital sectors.
Projects include the construction of various infrastructure projects, such as road networks, flood control projects, sea ports development of local government units, buildings, irrigation systems, school buildings, hospital and health centers, water supply systems, airport systems, right-of-way acquisitions, power supply systems, housing and community facilities, railway systems, and reforestation projects.
On Monday, Pangandaman expressed hope of high agency utilization rate of the funds as DBM has “unloaded” the budget.
The DBM said the proposed infrastructure budget for next year has been pegged at P1.507 trillion and is pending Congress’ approval.
“While this is 0.3 percent lower than this year’s infrastructure budget of P1.51 trillion, the national government anticipates this will be bolstered by the increase in private sector investments through the recent enactment of the Public-Private Partnership (PPP) Code and the issuance of its implementing rules and regulations,” the DBM said.
“For instance, PPP projects in the pipeline, the bulk of which are infrastructure-related, already amount to P3.183 trillion,” it added.
The DBM said appropriations on infrastructure outlay continue to increase year by year, from P989.3 billion in 2020, P1.074 trillion in 2021, P1.178 trillion in 2022, P1.330 trillion in 2023 and P1.510 trillion in 2024,” the DBM said.
