Analyst sees front-load spending on DPWH 2025 projects
The national government’s disbursements for infrastructure and other capital outlays rose 17.9 percent to P113.5 billion in March from P96.3 billion a year earlier, the Department of Budget and Management (DBM) said on Wednesday.
Data posted on the DBM website on Wednesday showed the double-digit spike was due to the Department of Public Works and Highways’ (DPWH) aggressive implementation of 2025 infrastructure projects, which saw an increase in the payment of progress billings and accounts payables, right-of way settlements, and the release of final payments and retention releases for completed projects.
“Examples of these projects include the design, build, and construction of bridges; flood management/control projects; construction of administration/office buildings, health facilities, and air passenger terminal buildings; road rehabilitation; and construction of access roads and/or bridges,” the DBM said.
In the first quarter of the year, infrastructure spending totaled P261.8 billion, representing a 20.8 percent increase from the P216.8 billion disbursed in the same three-month period in 2024.
The Bureau of the Treasury (BTr) reported less than two months ago that overall government expenditures increased by 22.43 percent year-on-year to P1.477 trillion as of the end of March 2025, from P1.206 trillion in the same three-month period in 2024.
“National government spending remained a key driver of the 5.4 percent economic performance during the first quarter
of the year, where the government’s final consumption expenditure, or the disbursements made for the delivery of goods and services, including personnel services expenses, grew by 18.7 percent,” the DBM said.
“Meanwhile, public construction, which accounts for government investments in infrastructure and other capital outlays projects, expanded by 8.2 percent. When combined, government spending contributed almost three percentage points to the 5.4 percent GDP growth in the last quarter,” the DBM added.
In a more recent report last month, the BTr stated that total public expenditures as of the end of April increased by 13.57 percent to P1.932 trillion from the previous year’s P1.701 trillion.
“Disbursements are seen to pick up toward the end of May as the election-related ban on public works and spending ends,” the DBM said.
The budget department said among the anticipated spending drivers for the period are the mid-year bonus of government employees; expenses of the Commission on Elections for the conduct of the 2025 midterm elections, such as the allowances/honoraria of teachers and poll workers; DPWH payables for completed/partially-completed capital outlay projects; social protection programs, such as the Assistance to Individuals in Crisis Situation Program and Ayuda sa Kapos ang Kita Program; and the Universal Access to Quality Tertiary Education – Tertiary Education subsidy.
“The implementation of massive infrastructure projects, governance reforms, and investments in human capital are expected to sustain the strong spending performance recorded in the first quarter. This will hopefully help translate to improved economic growth for the rest of the year,” the DBM said.
The Marcos Jr. administration is forging ahead with the “Build Better More” program, which expands on the previous administration’s “Build, Build, Build” program.
The new program focuses on implementing high-impact infrastructure flagship projects (IFPs).
According to the government’s database, there are currently 207 IFPs, with an indicative total cost of PHP 10.073 trillion.
The government’s spending uptrend augurs well for the program to spur economic growth, two noted analysts said.
Michael Ricafort, Rizal Commercial Banking Corp. chief economist, said this latest increase could be attributed to midterm election-related infrastructure spending before the election ban took effect.
“This would still bode well for faster growth in government spending, as a major contributor to the country’s overall economic growth and development that is more inclusive,” Ricafort said.
“Better infrastructure improves productivity and helps attract more foreign investments and foreign tourists,” he said.
John Paolo Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the year-on-year increase in infrastructure disbursements in March may reflect the government’s strong push to front-load spending, especially under the DPWH’s aggressive rollout of its 2025 pipeline.
“We can expect infrastructure spending to remain elevated in the coming months as the government uses it as a countercyclical tool to support growth amid global uncertainties and uneven private sector momentum,” Rivera said.
“However, absorptive capacity, right-of-way issues, and potential weather disruptions during the rainy season will be key factors to watch in terms of execution,” he said.
