The Philippine government's infrastructure spending dropped by 40 percent in the first two months of 2025 compared to the same period last year, raising concerns about the pace of the country's public construction program.
Data from the Department of Budget and Management (DBM) showed that total infrastructure disbursements from January to February reached only ₱124.5 billion, down from ₱207.5 billion in the same period in 2024.
The decline was attributed to the delayed implementation of several big-ticket projects and the absence of election-related spending, which boosted expenditures in early 2024.
National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan acknowledged the slowdown but assured that the government is working to accelerate project approvals and fund releases in the coming months.
"We are implementing measures to streamline procurement and remove bottlenecks to ensure that infrastructure spending picks up in the second quarter," Balisacan said in a briefing.
The government has allocated ₱1.5 trillion for infrastructure in 2025, equivalent to 6.2 percent of GDP. However, the slow start has led analysts to question whether the full-year target is achievable.
Finance Secretary Ralph Recto remained optimistic, noting that infrastructure spending typically accelerates after the first quarter as project contracts are finalized and construction activities ramp up.
"The first two months are always slower due to the transition period and the holiday season. We expect a strong rebound in the coming months as projects break ground," Recto said.
The Philippine government's "Build, Better, More" program aims to modernize the country's infrastructure network to sustain economic growth and improve connectivity.