Gov’t infra spending poised to surpass target in 2023

Efficient implementation of catch-up plans has positioned the Marcos administration to exceed its infrastructure spending target for this year, data from the Development Budget Coordination Committee (DBCC) showed.

The DBCC, an inter-agency body responsible for setting the government’s macroeconomic assumptions, projects that total infrastructure expenditures for 2023 will reach ₱1.424 trillion, a 10 percent increase over the ₱1.293-trillion program.

The DBCC'S projection also exceeds last year's actual infrastructure spending of ₱1.278 trillion by 11 percent.

If realized, the level of infrastructure spending will correspond to 5.8 percent of the economy, as measured by the country’s gross domestic product (GDP), matching last year’s ratio.

The 2023 DBCC outlook even surpasses the ₱1.408-trillion target for the next year, which represents only 5.2 percent of the GDP.

Finance Secretary Benjamin E. Diokno said that infrastructure investments, which have significant multiplier effects on the economy, are a top priority on President Marcos’ agenda.

The Marcos administration's goal is to sustain annual infrastructure spending at five percent to six percent of the GDP, amounting to around ₱1.3 to ₱2.3 trillion each year until 2028.

As part of the president's flagship Build Better More program, the government has outlined plans to invest in 197 infrastructure projects amounting to ₱8.7 trillion.

Notably, approximately 41 of these key projects are set to be financed through publicprivate partnerships.