April capital outlay down 27.8%; year-to-date up 3.6%
Government infrastructure spending dropped sharply in April as a result of the election-related ban on new public works, the Department of Budget and Management (DBM) said on Tuesday.
Infrastructure and other capital outlays fell 27.8 percent to P85.8 billion in April, down from P118.9 billion a year earlier, as shown by DBM data.
The agency attributed the contraction mainly to lower disbursements by the Department of Public Works and Highways (DPWH), citing election-related spending prohibitions and fewer contractor billings.
“Infrastructure activities were likewise frontloaded and accelerated in the earlier months in anticipation of the election ban,” the DBM added.
The decline also reflected lower direct payments for foreign-assisted transportation projects, including the South Commuter Railway and the Metro Manila Subway, along with reduced releases for local counterpart funds.
Spending still up year-to-date
Despite the April dip, total infrastructure and capital outlay disbursements from January to April rose 3.6 percent year-on-year to P347.6 billion, from P335.7 billion in the same period last year.
The DBM said this was driven by DPWH’s ongoing implementation of infrastructure projects, right-of-way settlements, and payments for progress billings and payables.
Cash usage steady
In a separate report, the DBM said the government’s cash utilization rate remained at 94 percent in the first five months of 2025 — unchanged from the same period last year.
From January to May, agencies used P1.978 trillion of the P2.114 trillion in notice of cash allocations (NCAs) released.
By agency type:
Line departments utilized P1.447 trillion out of P1.578 trillion in NCAs — a 92 percent usage rate.
Government-owned and -controlled corporations (GOCCs) also used 96 percent of their NCAs, or P53.5 billion.
On the other hand, local government units (LGUs) recorded the highest utilization rate at 99 percent, spending P477.9 billion of their allocated NCAs.
The DBM said higher utilization typically reflects stronger implementation of government programs and projects.
