Infrastructure spending declined 35.3 percent in May, falling to 80.1 billion pesos from 123.8 billion pesos the previous year. The drop follows the implementation of stricter review, audit, and validation procedures for payment claims and documentary compliance requirements for contractors.
Monthly data shows a 93.1 percent rise in May compared to April, when disbursements were 41.5 billion pesos. Despite the month‑to‑month surge, the first five months of the year saw a 42.9 percent overall decline, with capital outlays totaling 269.4 billion pesos versus 471.5 billion pesos a year earlier.
Experts caution that sustained underspending may erode economic growth. A senior economist warned that weak infrastructure investment could reduce second‑quarter GDP growth by two to three percentage points relative to the same period last year.
He added that energy price spikes, tight financial conditions, and high borrowing costs could blunt any rebound in spending. To support the projected 3.5 to 4.5 percent growth target, infrastructure expenditure should increase by 10 to 15 percent on average for the remainder of the year.
Analysts argue that the current execution process creates loopholes that allow bid rigging and weak oversight. They recommend assigning budgets based on agencies’ absorptive capacity rather than politically motivated discretion to reduce leakages.
Proposals include professionalizing procurement, expanding digital monitoring, and ensuring accountability mechanisms operate quickly and predictably. The goal is to prevent corruption safeguards from stalling project implementation while maintaining rigorous oversight.
Transport projects have faced delays, but recent progress includes the completion of key tunneling works for the Metro Manila Subway. The tunnel from Valenzuela to Quirino Avenue Station and the section from North Avenue to Tandang Sora Station are now finished, advancing the overall completion rate to 60 percent.
Officials anticipate a demonstration run of the Valenzuela‑to‑Quirino segment before the end of the current term, with full project completion targeted for 2028. The government also plans to accelerate other transport initiatives, such as deploying electric buses and expanding active transport infrastructure.
Overall, the emphasis is on spending smarter, faster, and cleaner to sustain growth, create jobs, and strengthen public trust. Every peso is urged to deliver maximum public value within the constraints of limited fiscal space.
