Government infrastructure spending and capital outlays fell 48 percent to P59.1 billion in March 2026 from P113.5 billion a year ago on weaker disbursements from the Department of Public Works and Highways.
The lower outturn for infrastructure and other capital expenditures affected overall spending growth in the first quarter of 2026, the Department of Budget and Management (DBM) said.
Total disbursements rose 3.2 percent to P1.49 trillion in the January-to-March period from P1.44 trillion a year earlier. Increased transfers to local government units, interest payments, personnel services expenditures, maintenance and other operating expenses and subsidies drove the overall growth.
The budget agency attributed the weaker public works disbursement performance to the ongoing completion of carry-over projects from last year and the continuing implementation of this year’s budget.
“The adoption of stricter validation process for billing claims to ensure project quality and value for money also continued to affect the department’s spending outturn,” the agency said.
Implementation of capital outlay projects under the Revised Armed Forces of the Philippines Modernization Program tempered the decline in infrastructure spending.
The DBM said the implementation of various capital outlay projects should pick up in the second quarter following allotment releases earlier this year, particularly in March.
These allotments will allow line agencies to conduct bidding activities and obligate funds.
“Infrastructure departments are, likewise, expected to take advantage of the summer season to expedite construction activities. This will hopefully build up spending momentum and help the recovery of infrastructure spending towards the second half of the year,” the agency said.
