Beyond Budget
Assalamu alaikum wa Raḥmatullahi wa Barakatuh.
Infrastructure development is the cornerstone of our economic development. I believe it has the power to transform our society by creating jobs, connecting people, and changing lives — a catalyst for holistic national progress. It is not merely an investment in projects but an investment in our people and the future of our country.
As such, it remains a key priority of President Ferdinand “Bongbong” R. Marcos, Jr. (PBBM). In his 2024 State of the Nation Address, he reaffirmed his administration’s commitment, emphasizing that “our infrastructure development remains sustained, strategic, and on schedule,” to create a multiplier effect, drive productivity, reduce logistics costs, foster regional equity, enhance disaster resilience, and position the country as a competitive global player.
2024 Infrastructure spending
Indeed, the PBBM administration is investing and spending more on infrastructure, with appropriations in the national budget for capital outlays soaring yearly — from ₱989.3 billion in Fiscal Year (FY) 2020 to ₱1.074 trillion in FY 2021, ₱1.178 trillion in FY 2022, and ₱1.330 trillion in FY 2023.
Under the FY 2024 General Appropriations Act (GAA), infrastructure outlays, including infrastructure components of the subsidy/equity to Government-Owned and -Controlled Corporations and transfers to local government units, have a record-breaking allocation of ₱1.510 trillion, equivalent to 5.7 percent of our gross domestic product (GDP). It is consistent with our Medium-Term Fiscal Framework to achieve our growth targets, and well within our government’s target for infrastructure spending at five to six percent of GDP. It also represents a 13.5 percent increase compared to the FY 2023 GAA level. I believe this reflects our unwavering dedication to building better and more, aligned with the administration’s Build Better More infrastructure program.
And I am happy to note that we are on track with our infrastructure spending. Overall infrastructure disbursements from January to September 2024 reached ₱1.143 trillion, higher by ₱121.5 billion or 11.9 percent from the previous year’s level. This is equivalent to 6.1 percent of GDP, greater than the 5.9 percent outturn for the same period last year, and the 5.6 percent full-year target this year. This is due to the accelerated implementation of banner infrastructure projects and defense modernization projects, among others.
It may also interest you to know that the actual spending during the first three quarters of 2024 was more than what was allocated for the same period for FY 2020, which was ₱595 billion; FY 2021 at ₱807.5 billion; and FY 2022 at ₱911.6 billion. This demonstrates the administration’s focus on fast-tracking infrastructure projects.
For the last quarter, infrastructure spending, along with social and agriculture programs, is expected to continue driving higher overall government disbursements and, ultimately, contribute to faster economic growth, reaching 6.0 to 6.5 percent in 2024.
Infrastructure flagship projects
The National Economic and Development Authority (NEDA) Board chaired by PBBM approved 186 high-impact IFPs with an indicative total cost of ₱9.68 trillion. Four of these have been completed, while 67 projects are ongoing, 30 projects are approved for implementation, five are for government approval, 37 are under project preparation, and 43 are under pre-project preparation.
These projects include railways, road networks, seaports, airports, right-of-way acquisitions, and digital linkages, which will bridge the physical and digital divide. Also included are flood control projects, irrigation systems, school buildings, hospitals and health centers, and water and power supply systems, ensuring quality services to stir economic activities.
Budget for infrastructure
For FY 2025, the proposed infrastructure budget amounts to ₱1.507 trillion, still subject to the wisdom of Congress as they deliberate on the budget. Though this is 0.3 percent lower than this year’s infrastructure budget, we anticipate an increase in private sector investments through the Public-Private Partnership (PPP) Code and the issuance of its Implementing Rules and Regulations (IRR). PPP projects in the pipeline, the bulk of which are infrastructure-related, already amount to ₱3.183 trillion.
Enabling environment
Aside from the PPP Code, our government has enacted laws and issued policies to create a more conducive and responsive environment for infrastructure development, including the amended IRRs of the Renewable Energy Act and the amended Public Service Act, which allow greater participation of foreign investors in the provision of critical infrastructure; the New Government Procurement Act that increases competitiveness and efficiency in public procurement; the ratification of the Regional Comprehensive Economic Partnership (RCEP) to further open our economy to markets that will boost trade and investments; and Executive Order No. 59, signed by PBBM in April 2024, to fast-track the implementation of the IFPs by streamlining the processing of permits, removing causes of delays in issuing licenses, clearances, or permits needed to approve and implement the IFPs at the national and local levels.
Beyond budget, the PBBM administration is positive that expanding and upgrading our infrastructure will create more quality jobs for our kababayans, raise industries’ competitiveness, and increase economic resilience and sustainability. Hence, we, at the Department of Budget and Management, are committed to ensuring that the infrastructure spending for the remainder of the year and in the years to come, will help attain our Agenda for Prosperity and a Bagong Pilipinas where every Filipino has access to better opportunities and enjoys an improved quality of life.
(Amenah F. Pangandaman is the Secretary of the Department of Budget and Management.)