DBM: 0.3% lower proposed infra budget for 2025 to be offset by PPP projects

The Marcos administration has set aside a slightly lower budget for its infrastructure initiatives next year as it banks on a slew of public-private partnership (PPP) projects to come in.

In a statement on Wednesday, the Department of Budget and Management (DBM) said its proposed infrastructure budget for fiscal year 2025 stood at P1.507 trillion.

The DBM said the amount is “still subject to the wisdom of Congress as they deliberate on the budget.”

The infrastructure budget earmarked for 2025 is lower by 0.3% than 2024’s P1.510 trillion.

Despite the slightly lower allocation for infrastructure next year, the DBM said “the national government anticipates that this will be bolstered by the increase in private sector investments through the recent enactment of the Public-Private Partnership (PPP) Code and the issuance of its Implementing Rules and Regulations (IRR).”

The Budget Department said that “for instance, PPP projects in the pipeline, the bulk of which are infrastructure-related, already amount to P3.183 trillion.”

The DBM, moreover, said appropriations for Infrastructure Outlay continues to ascend year by year, from P989.3 billion in 2020, P1.074 trillion in 2021, P1.178 trillion in 2022, P1.330 trillion in 2023 and P1.510 trillion in 2024. 

Nonetheless, it noted that infrastructure development through the Build-Better-More Program remains to be among the key priorities of the administration of President Ferdinand “Bongbong” R. Marcos Jr.

This year’s infrastructure budget of P1.510 trillion is equivalent to 5.7% of our gross domestic product (GDP).

“Infrastructure development remains a priority under the administration of President Bongbong Marcos. We have allocated P1.510 trillion for infrastructure outlays in this year’s national budget. This is consistent with our Medium Term Fiscal Framework to achieve our growth targets, and is well within the National Government’s target for infrastructure spending at 5% to 6% of GDP,” said Budget Secretary Amenah Pangandaman said.

“This allocation is also higher by 13.5% compared to the FY 2023 GAA level of P1.330 trillion. This reflects our solid commitment to advance the Build, Better, More program,” added Pangandaman.

The DBM said the allocation for infrastructure development aims to continue increasing access to basic services, strengthening industry linkages, and expanding connectivity nationwide through programs, activities, and projects in the infrastructure, transportation, and digital sectors.

These include the construction of various infrastructure projects, such as road networks, flood control projects, sea ports. development of LGUs, buildings, irrigation systems, school buildings, hospital and health centers, water supply systems, airport systems, right-of-way acquisitions, power supply systems, housing and community facilities, railway systems, and reforestation projects. —KBK, GMA Integrated News