The Philippines’ infrastructure spending climbed by 8.9 percent to PHP1.545 trillion in 2024, up from PHP1.419 trillion in 2023, the Department of Budget and Management (DBM) reported on Wednesday.
The 2024 disbursement exceeded the government’s target by PHP72.4 billion, or 4.9 percent, and represented 5.8 percent of the country’s gross domestic product (GDP). This met the government’s Medium-Term Fiscal Framework target of spending 5 to 6 percent of GDP on infrastructure.
“The spending performance surpassed expectations due to the accelerated implementation of construction activities of the Department of Public Works and Highways (DPWH) and direct payments made for the Department of Transportation’s (DOTr) foreign-assisted rail projects, among others,” the DBM said.
The increase was driven primarily by the DPWH’s ramped-up implementation of carry-over projects from previous years and payments for completed or ongoing infrastructure works. Foreign development partners’ direct funding for DOTr’s rail projects also boosted disbursement levels.
For 2025, infrastructure spending is projected to remain robust at 5.4 percent of GDP.
The rise in spending aligns with President Ferdinand R. Marcos Jr.’s Build Better More program, which aims to usher in a “golden age” of infrastructure to improve mobility, connectivity, and economic growth across the country.