Cabinet-level interagency Development Budget Coordination Committee (DBCC) has projected weaker state spending on infrastructure for 2027, even as the government seeks to revive flood control funding.

According to the updated national government fiscal program for 2025 through 2029, the DBCC lowered the nominal infrastructure program for 2027 to ₱1.34 trillion from the ₱1.69 trillion projected in the previous program.

This follows a downward revision for 2026 to ₱1.27 trillion from the ₱1.56 trillion outlined in the previous medium-term plan.

These sweeping tweaks, which also covered 2028, translate to a lower share of infrastructure spending in the country’s overall economic output, as measured by gross domestic product (GDP).

GDP is estimated to breach ₱30 trillion this year and hit ₱33.23 trillion in 2027. Given these revisions, 2026 spending is now equivalent to 4.2 percent of GDP, down from 5.1 percent previously, while 2027 spending is projected at 4.0 percent, down from the earlier target of 5.1 percent.

Data from the Department of Budget and Management (DBM) showed that infrastructure and other capital outlays shrank by ₱202.1 billion, falling to ₱269.4 billion as of end-May 2026, compared with the ₱471.5 billion recorded during the same period last year.

Despite these lower medium-term projections, President Marcos has proposed that the government spend ₱1.47 trillion on infrastructure projects in 2027—13.8 percent higher than the 2026 program—to expand the country’s road networks, classrooms, transport, and water supply systems.

According to the 2027 National Expenditure Program turned over to Congress for review, infrastructure spending for next year is proposed to increase from the ₱1.29 trillion programmed for this year.

“Our flagship infrastructure program, Build Better More, will receive ₱1.467 trillion in 2027 to fund priority infrastructure projects nationwide,” Marcos said in his budget message. “These investments will further expand our road networks, educational facilities, railways, buildings, and water supply systems that will support economic activity and improve public service delivery for many years to come.”

This proposed growth is primarily driven by massive increases in transportation outlays and continued expansion in public works, though it is tempered by notable reductions in social infrastructure like education and health.

According to the DBM, the Department of Transportation (DOTr) was the main contributor to the increase, with its total program nearly tripling from ₱86.49 billion in 2026 to ₱247.5 billion in 2027. This surge is almost entirely fueled by foreign-assisted projects (FAPs), which are proposed to jump from ₱64.1 billion to ₱232.2 billion.

Meanwhile, the Department of Public Works and Highways (DPWH) continues to hold the largest single share of infrastructure funds. Its allocation is proposed to increase by over ₱100 billion, rising from ₱510.2 billion in 2026 to ₱619.0 billion in 2027. Of the total DPWH budget for next year, 16.2 percent is earmarked for flood control funding. The majority of the agency's overall budget is directed toward direct infrastructure outlays, which will increase from ₱396.8 billion to ₱545.6 billion.

However, while the current administration is seeking higher overall spending in select sectors, sharp cuts are slated for several key departments in 2027.

For instance, the infrastructure budget for the Department of Education (DepEd) is proposed to drop sharply from ₱100.3 billion in 2026 to ₱36.6 billion in 2027. The Department of Health (DOH) also faces a steep reduction, with its proposed infrastructure program set at ₱10.6 billion—less than half of its ₱23.1 billion programmed amount for 2026.

Furthermore, the Department of Agriculture (DA) infrastructure budget is proposed to decrease from ₱53.7 billion to ₱38.0 billion. Similarly, the National Irrigation Administration (NIA) sees its allocation cut from ₱50.1 billion in 2026 to ₱30.4 billion in 2027.