Philippine Gov’t to Offset Slight Dip in 2025 Infrastructure Budget with Boosted PPP Projects

The Philippines’ Department of Budget and Management (DBM) has proposed a slightly reduced infrastructure budget of PHP 1.507 trillion for 2025, which is 0.3% lower than the PHP 1.510 trillion allocation in 2024. Despite this small reduction, the government expects that the shortfall will be covered by Public-Private Partnership (PPP) projects, particularly with the recent approval of the PPP Code and its regulations. Currently, infrastructure-focused PPP projects in the pipeline are estimated at PHP 3.183 trillion.

The DBM highlighted the steady increase in infrastructure outlay over the years, growing from PHP 989.3 billion in 2020 to PHP 1.510 trillion in 2024. Infrastructure development remains a high priority under President Ferdinand Marcos Jr.’s Build-Better-More Program, with projects that include transportation, digital infrastructure, and basic services across various sectors. This focus aligns with the administration’s fiscal framework to maintain infrastructure spending at 5% to 6% of GDP.