THE NATIONAL Government (NG) is expected to spend P1.28 trillion on infrastructure and capital outlays next year, the Department of Budget and Management said.
Under next year’s Budget of Expenditures and Sources of Financing, infrastructure and other capital outlays are expected to jump by 3.04% from P1.24 trillion this year.
This excludes infrastructure subsidy and equity to government-owned and -controlled corporations (GOCCs) and infrastructure transfers to local government units.
The administration seeks to spend 5-6% of gross domestic product (GDP) on infrastructure annually.
Infrastructure outlays, which refer to appropriations for each infrastructure expense class, are expected to dip to P1.506 trillion next year from P1.51 trillion this year.
Infrastructure disbursements, or the actual payments made for completed projects, are projected to rise by 4.46% to P1.54 trillion next year from P1.47 trillion this year.
The government may be constrained in increasing infrastructure spending due to limited financial resources, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.
“In view of this, there is a need to focus on priority infrastructure spending that have the greatest benefit to the greatest number of persons and for the whole economy, in view of limited funds, amid the budget deficits,” he said in a Facebook Messenger chat.
The latest data from the DBM showed that infrastructure spending jumped by 21.7% to P472.1 billion in the first five months of the year.
Meanwhile, there are 185 projects worth P9.56 trillion in the pipeline, according to the latest data from the National Economic and Development Authority. The bulk of these projects comes from the Department of Public Works and Highways (DPWH) with 74 and the Department of Transportation (DoTr) with 69.
For next year, the DPWH is seeking P70.7 billion for foreign-assisted projects, while the DoTr seeks P122.6 billion for its projects.
Under the DPWH, P40.33 billion in foreign assistance will be used to construct roads and bridges, P2.8 billion for buildings and P27.57 billion for flood control projects.
For 2025, the NG seeks a total of P215.65 billion in foreign assistance.
These include P132.64 billion from the Japan International Cooperation Agency, P32.47 billion from the Asian Development Bank, and P29.89 billion from the World Bank’s International Bank for Reconstruction and Development.
It also eyes loans from the Asian Infrastructure Investment Bank (P2.88 billion), China (P7.93 billion), Korea’s Economic Development Cooperation Fund (P7.69 billion), and International Fund for Agricultural Development (P906.74 million), among others.
Meanwhile, next year’s climate fund more than doubled (122.93%) to P1.02 trillion from P457.41 billion allocated this year. — B. M. D. Cruz