Government looks to spend ₱4.855 trillion on infrastructure over the next four years

According to economic managers, the government is looking to spend ₱4.855 trillion on infrastructure to boost productivity and economic growth over the next four years.

The spending is equivalent to 5% of Philippine economic output, according to the Development Budget Coordination Committee’s (DBCC) latest medium-term fiscal program, Friday.

The state is likely to spend ₱1.02 trillion this year, which is lower than the initial ₱1.17-trillion target, according to the DBCC. The expenditure is equivalent to roughly 5.1% of economic output, which is lower than the 5.9% goal posted in December.

DBCC expects infrastructure spending to hit ₱1.251 trillion next year, or 5.7% of economic output, which is higher than the original spending plan of ₱1.154 trillion, or 5.1% of the gross domestic product (GDP).

The economic team put infrastructure spending at ₱1.262 trillion in 2023 or 5.2% of economic output, and projects it to rise to ₱1.321 trillion in 2024, or 5% of GDP.

The Duterte administration has planned to spend ₱8 trillion for its “Build, Build, Build” infrastructure program until the end of its term in mid-2022 or an equivalent of 5% of GDP each year to drive economic growth and create jobs.

From July 2016 to May 2021, the National Economic and Development Authority (NEDA) board, which President Duterte heads, has approved 92 projects worth ₱3.87 trillion so far.

NEDA is currently reviewing 17 more projects worth roughly ₱394.96 billion to be approved by the Cabinet-level Investment Coordination Committee (ICC), and 26 more under technical review.

Infrastructure spending has risen by 41% year on year to ₱87.7 billion in March, bringing the first-quarter total to ₱195.2 billion.

SOURCE: Business World