THE national government’s infrastructure disbursements have yet to recover as tighter review procedures implemented following last year’s flood control project scandal continued to weigh on project execution and payment processing.
Infrastructure and other capital outlays declined by 42.9 percent to P269.4 billion in the January-to-May period from P471.5 billion a year earlier, data released by the Department of Budget and Management (DBM) showed.
The slowdown pulled total capital outlays down by 25.8 percent to P425.7 billion from P574.0 billion.
“The year-on-year moderation largely reflects the implementation of enhanced governance measures and stricter review and validation procedures for infrastructure projects, following the government’s intensified efforts to strengthen accountability and ensure the prudent use of public funds,” the DBM said.
It added that these measures had affected the timing of some infrastructure disbursements, particularly for projects being implemented by the Department of Public Works and Highways (DPWH).
In May alone, infrastructure and other capital outlays declined by 35.3 percent to P80.1 billion from P123.8 billion a year earlier.
The DBM again attributed the drop to strengthened review, audit and validation procedures for payment claims and stricter documentary compliance requirements for contractors, which affected the timing of payments for some DPWH projects.
“Offsetting part of the reduction were higher disbursements for the Revised AFP Modernization Program, major railway projects of the Department of Transportation, and the DepEd School Building Program,” it added.
Overall national government disbursements continued to increase, however, reaching P2.596 trillion as of end-May — P119.2 billion or 4.8 percent higher than the P2.477 trillion recorded in the same period in 2025.
This was driven by higher current operating expenditures, particularly larger transfers to local government units (LGUs), interest payments, subsidies, personnel services and maintenance and other operating expenses (MOOE).
Combined allotments and capital transfers to LGUs posted the largest increase during the period, rising by P129.2 billion or 27.2 percent from a year earlier.
Interest payments climbed by P63.9 billion or 17.9 percent while subsidies more than doubled to P98.0 billion, up P53.0 billion or 117.6 percent.
Personnel services also increased by P46.5 billion or 7.5 percent to P668.7 billion, while MOOE rose by P40.5 billion or 8.4 percent to P523.5 billion.
In May alone, national government disbursements amounted to P600.2 billion, up 3.8 percent from P578.2 billion.
Year to date, the government has released P5.958 trillion in allotments, equivalent to 87.7 percent of the P6.793-trillion obligation program for 2026.
In May alone, P435.0 billion worth of allotments were released, including P403.3 billion for various DPWH projects, P6.2 billion for financial assistance to LGUs, P2.4 billion in subsidies for the Philippine Fisheries Development Authority, P2.0 billion for the construction of unfinished school buildings and P1.8 billion for the National Dairy Authority. The allotments authorize agencies to incur obligations but are separate from actual cash disbursements.
The DBM said government spending was expected to accelerate in the coming months, supported by the continued implementation of priority programs and the release of major allotments across key sectors.
The agency also said spending would be reinforced by programs under the Unified Package for Livelihood, Industry, Food and Transport, the government’s response to cushion the economic impact of the Middle East war.
