The government has recently announced its allocation of P1.510 trillion to support its Build, Better, More infrastructure program for the current year. This amount represents an increase of P180 million compared to the infrastructure budget of the previous year. In a statement on Sunday, Budget Secretary Amenah Pangandaman expressed the government’s commitment to continue providing the necessary budget for the program.
To ensure efficient and prompt utilization of the infrastructure budget, the Department of Budget and Management (DBM) is urging all government agencies to disburse their funds effectively. The Build, Better, More initiative aims to enhance growth in remote areas by focusing on road, rail, mass transport, and flood control projects.
The government’s investment in infrastructure constitutes 5.5 percent of the projected gross domestic product (GDP) for 2024, falling within the target range of 5.0 to 6.0 percent. The Public Sector Infrastructure budgets of the Department of Transportation (DoTr) and the Department of Public Works and Highways (DPWH) are allocated P26.580 billion and P981.999 billion, respectively.
As of November 2023, infrastructure and capital outlays spending has increased by 18.5 percent, reaching P1.02 trillion compared to P861.8 billion in the previous year. This rise can be attributed to the DPWH’s expenditure on road infrastructure, disbursements by the Defense department, and foreign-assisted railway projects under the Transportation department.
In November, overall government spending amounted to P433.6 billion, a decrease of 4.7 percent compared to P455 billion in the same period the previous year. However, on a year-to-date basis, government spending has increased by 3.6 percent, totaling P4.67 trillion compared to P4.513 trillion.
The Department of Budget and Management has highlighted that there is a remaining amount of P131.1 billion, equivalent to 2.4 percent of the government’s P5.537-trillion obligation program, that needs to be released. The department also noted that spending, including infrastructure investments, improved in the second half of the year. Alongside lower inflation, this improvement is expected to contribute to a more favorable macroeconomic environment in 2024.
The government’s commitment to allocating a substantial budget to its Build, Better, More infrastructure program demonstrates its dedication to promoting economic growth and development. By investing in crucial projects such as roads, railways, mass transport, and flood control, the government aims to facilitate progress in remote areas and improve the overall infrastructure of the country. With efficient utilization of the allocated funds, the government aims to achieve its target range for infrastructure investment as a percentage of GDP, ultimately benefiting the nation as a whole.
Source: The Manila Times
