DBM proposes slight dip in 2025 infrastructure budget, banks on PPPs

MANILA, Philippines — The government has set a lower infrastructure budget for 2025, which will be offset by anticipated public-private partnership projects, The Department of Budget and Management (DBM) said.

In a statement on Wednesday, October 10, the agency proposed P1.507 trillion for infrastructure initiatives in fiscal year 2025, a 0.3% decrease from this year's allocated budget of P1.510 trillion. This represents 5.7% of the country's gross domestic product.

The DBM noted that the proposed amount is still subject to the wisdom of Congress.

It would be the first decrease in infrastructure outlay since 2020.

The country's infrastructure expenditures have been increasing since 2020:

Despite the decrease, the DBM expects the budget to be supplemented by a rise in private sector investments. It attributes this rise to the introduction of the Public-Private Partnership Code and release of its Implementing Rules and Regulations.

Planned public-private partnerships, mostly focused on infrastructure, already amount to P3.183 trillion, the DBM said.

“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,” Budget Secretary Amenah Pangamdaman said.

"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 our GDP," she added.

Following the signing of the Public-Private Partnership Code last April, lawmakers have estimated P9.14 trillion worth of 185 flagship projects to be implemented under the current administration.