The government’s expenditures for infrastructure soared to P1.2 trillion last year, posting a double-digit increase year-on-year as well as versus target.
Data released by the Department of Budget and Management (DBM) showed expenditures for infrastructure and other capital outlays surpassed the P1.04 trillion program by 16.2 percent.
It also saw a year-on-year increase of 18.7 percent versus the P1.02 trillion spent in 2022.
According to the DBM, the substantial growth in infrastructure and other capital outlays was mainly due to the robust spending performance of the Department of Public Works and Highways (DPWH) attributed to higher target disbursement rate, constant monitoring of project accomplishments, as well as expedited processing and payment of accounts payables.
“In addition, the sizable payments made by the country’s development partners for various foreign-assisted projects of the Department of Transportation (DOTr) (e.g., South Commuter Railway Project, Malolos-Clark Railway Project, North-South Commuter Railway Project, and Metro Manila Subway Project) significantly contributed to the higher infrastructure spending for 2023,” the DBM said.
Based on the records of the Bureau of the Treasury, direct payments made by foreign creditors for DOTr’s foreign-assisted infrastructure projects reached P71.7 billion last year, up from P43.1 billion in 2022, the DBM said.
Overall infrastructure disbursements, which include estimated national government infrastructure disbursements and infrastructure components of subsidy and equity to government-owned and -controlled corporations and transfers to local government units, reached P1.42 trillion, surpassing the P1.29 trillion program for 2023 by 9.8 percent.
This was equivalent to 5.8 percent of gross domestic product, better than the 5.3 percent target for 2023 and sustaining the 5.8 percent infrastructure spending-to-GDP outturn in 2022, the DBM said.
“The solid infrastructure spending performance largely resulted from the accelerated implementation of construction activities and payments for completed infrastructure projects of the DPWH, such as civil works, supplies, and equipment, as well as right-of-way claims,” the DBM said.
