GOVERNMENT infrastructure disbursements have yet to recover this year as tighter review procedures implemented in the wake of last year’s corruption scandal continue to weigh on project execution and payment processing.
Data released by the Department of Budget and Management (DBM) showed that overall disbursements rose by 11.1 percent to P505.4 billion in April from P454.8 billion a year earlier, buoyed by higher subsidies, transfers to local government units (LGUs), interest payments and personnel services expenditures.
Capital expenditures remained under pressure, however, with infrastructure and other capital outlays, which account for the bulk of government construction activities, plunging 51.7 percent to P41.5 billion from P85.8 billion previously.
“The contraction was attributed to the weak spending performance of the DPWH (Department of Public Works and Highways), as the implementation of its current year’s budget and completion of prior years’ projects are still ongoing, while the processing of payment claims undergoes stringent validation procedures,” the DBM said.
The department said the slowdown also reflected P13.8 billion worth of outstanding checks recorded by the DPWH as of end-April 2026 as suppliers and contractors had yet to present these for payment or encashment through banking institutions.
The picture was the same for the first four months of the year with infrastructure and other capital outlays dropping by P158.4 billion, or 45.6 percent, to P189.3 billion from P347.6 billion.
Overall infrastructure disbursements — which include estimated NG infrastructure expenditures as well as infrastructure-related subsidies, equity infusions to government-owned and controlled corporations and transfers to LGUs — declined by 28.4 percent to P300.4 billion from P419.4 billion.
“Infrastructure spending this year is yet to recover following the flood control corruption issues last year,” the DBM said.
“Progress billings for the period were not significant as most projects are being completed, while the turnaround time for processing of payments was extended due to review procedures,” it added.
The latest figures indicate that concerns over accountability and proper use of public funds were continuing to influence government spending even as it seeks to maintain fiscal support for economic activity.
The slowdown in infrastructure execution contrasts sharply with robust growth in other expenditure items.
Subsidy disbursements surged by 355.7 percent in April to P66.3 billion, largely due to the return of P60 billion to Philippine Health Insurance Corp. (PhilHealth) following the Supreme Court ruling that invalidated the transfer of the funds to the National Treasury.
Transfers to LGUs climbed by 19.1 percent to P110.9 billion, reflecting higher national tax allotment shares, the annual block grant for the Bangsamoro Autonomous Region in Muslim Mindanao and releases under the Local Government Support Fund.
Interest payments also rose by 36.8 percent to P63.5 billion due to higher Treasury bill volumes, new issuances of government securities, changes in interest rates, maturities of global bonds and the timing of loan payments.
Personnel services expenditures, meanwhile, expanded by 10.4 percent to P126.1 billion as the government implemented the third tranche of salary adjustments for eligible employees and higher compensation and subsistence allowances for military and uniformed personnel.
Looking ahead, the government expects infrastructure spending to gain momentum.
As of April 30, the remaining balance from the P6.793-trillion obligation program for 2026 stood at P1.27 trillion, equivalent to 18.7 percent of the year’s spending plan.
In May alone, the DBM released P435 billion worth of allotments, of which P403.3 billion was earmarked for various DPWH infrastructure projects.
The Budget Department said the releases should help support the recovery of infrastructure expenditures.
“Once contracts for various projects are awarded and subject to applicable procurement rules and regulations, contractors can usually request for mobilization fees or costs to jumpstart construction activities,” it said.