Government infrastructure and other capital outlays declined 25.3 percent to P93.3 billion in July 2025 from a year earlier, on a muted disbursement performance by the Department of Public Works and Highways (DPWH), the Department of Budget and Management (DBM) said Thursday.
The DBM said in its latest disbursement report the drop was mainly due to project implementation schedules, delays in some procurement activities and incomplete submission of progress billings and documentary requirements by contractors.
It released the report before the DPWH froze new flood control projects on allegations of corruption.
Total national government spending in July reached P491.2 billion, up 1 percent from a year ago. The rise was led by a 33.7-percent increase in debt interest payments.
Data showed that for the first seven months of the year, national government disbursements reached P3.52 trillion, or 8.2 percent higher year-on-year.
The DBM noted that key spending drivers for the period were a 15-percent rise in maintenance and other operating expenses (MOOE) and an 18.7-percent increase in allotments to local government units (LGUs).
The DBM also said that infrastructure and other capital outlays for the first seven months were lower, mainly due to the combined impact of the election ban on public works during the second quarter.
The DBM said a temporary slowdown in infrastructure spending is expected in the short term as the DPWH undertakes due diligence to evaluate and validate completed projects and enforce stricter verification of progress billings and other payment claims, it said.
“Infrastructure spending will hopefully normalize and catch up towards the latter part of the year,” the DBM said.
