Gov’t lowers 2027 infra spending program

MANILA, Philippines — The Marcos administration slashed its infrastructure disbursement program for 2027 by about 20.8 percent to P1.34 trillion from the P1.691 trillion initially programmed by the Development Budget Coordination Committee, the latest fiscal program data showed.

The downward revisions come amid the continued tightening of oversight on infrastructure projects following the multibillion-peso flood control scandal last year.

READ: Gov’t infra spending still down after 11 months

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According to the updated Budget of Expenditures and Sources of Financing for fiscal year 2027, the government expects the economy to reach P33.23 trillion next year, putting the revised infrastructure program at 4 percent of gross domestic product (GDP). This is lower than the 5.1-percent GDP share under the earlier program.

Still, the revised 2027 amount is 5.3 percent higher than the P1.272 trillion infrastructure disbursement program for 2026, which had likewise been lowered from P1.558 trillion.

Falling short

Latest data from the budget department showed that infrastructure spending from January to May had fallen 28.2 percent to P401.3 billion from P558.8 billion in the same period last year. This represents only 31.6 percent of the revised P1.272-trillion infrastructure program for 2026.

For 2027, the infrastructure disbursement program will cover national government infrastructure spending, infrastructure subsidies, equity contributions and transfers to local government units (LGUs).

Of the total, P938.8 billion will go to national government infrastructure projects, while P68.7 billion will be allocated as infrastructure subsidies and P2.5 billion as infrastructure equity.

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Transfers to LGUs are programmed at P330.8 billion. These include the 20-percent development component of the national tax allotment, as well as other financial assistance intended to support development and infrastructure projects of local governments.

‘Build Better More’

The programmed spending next year comes as the government is seeking to ramp up infrastructure investments under its Build Better More program, for which the 2027 National Expenditure Program proposes P1.47 trillion.

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The amount is 13.8 percent higher than the P1.29 trillion allocated for the program in 2026.

“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,” President Marcos wrote in his budget message.

For 2028 and 2029, the government has programmed infrastructure spending at P1.42 trillion and P1.505 trillion, respectively. INQ

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