Infrastructure spending rebounds in June

State spending on infrastructure bounced back in June, as disbursements for public works projects resumed after the election ban was lifted in early May, the Department of Budget and Management (DBM) said.

In its latest disbursement report on Thursday, the DBM reported that expenditure on infrastructure and other capital outlays increased by 6.5% to P148.8 billion in June from P139.7 billion in the same month last year.

Month on month, it increased by 20.2% from P123.8 billion.

This came after the month of May saw an annual 9.2% decline.

“This was largely attributed to the recovery of DPWH’s (Department of Public Works and Highways) spending performance following a two-month decline in April and May amid the election ban,” it said.

The Commission on Elections’ 45-day ban on public works spending started on March 28 and ended with the May 12 elections.

In June, the DPWH resumed payments for mobilization fees as well as made progress payments for newly awarded projects. It also settled outstanding obligations from previous years.

However, the DBM noted the pace of infrastructure spending was tempered by base effects from substantial releases for the Department of National Defense’s Revised Armed Forces of the Philippines Modernization Program in June last year.

The Philippines has been ramping up its military capacity under the $35-billion military modernization program since 2012 in response to rising tensions in the South China Sea.

The DBM said big-ticket releases for infrastructure are expected in the second half of the year.

Budget Secretary Amenah F. Pangandaman earlier explained that disbursements are expected to pick up toward the latter part of May to June after the 45-day election ban is lifted.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that increased infrastructure spending is crucial for economic growth.

“(This will translate to) more inclusive economic growth and development, as better infrastructure boosts the economy’s productivity, as well as help attract more foreign tourists and more foreign investments/locators,” Mr. Ricafort said in a Viber message on Thursday.

For the first half of 2025, overall infrastructure and capital outlays disbursements inched up by 1.4% to P620.2 billion from P611.8 billion in the same period last year.

This was 0.1% or P800 million below the P621-billion program for the first semester.

“Although infrastructure expenditures posted a notable 20.8% (P45-billion) annual growth in first quarter this year, it contracted by 9.3% (P36.6 billion) in second quarter amid the election-related prohibition on public spending covering the entire month of April up to the first two weeks of May,” the DBM said.

Meanwhile, overall infrastructure disbursements, which include infrastructure components of subsidy or equity to government corporations and transfers to local government units, were flat at P720.3 billion in the January-to-June period from P720.5 billion a year ago.

It also exceeded the overall infrastructure spending program of P718-billion for the first half by 0.3%.

The DBM said growth in infrastructure transfers to local government units, particularly their development fund equivalent to 20% of the National Tax Allotment, was offset by lower National Government-implemented infrastructure activities and reduced subsidies to state agencies like the National Irrigation Administration (NIA).

Subsidies provided to state-run firms stood at P7.45 billion in June, 26.68% down from P10.16 billion a year earlier.

Budgetary support to the NIA plunged by 68.21% in June to P2.39 billion from P7.52 billion in the same period in 2024.

“Nevertheless, the total infrastructure spending for the first semester was registered at 5.3% of GDP (gross domestic product), in line with the 5.3% full-year target for this year,” it added.

Based on the 2026 Budget of Expenditures and Sources, the government set its full-year infrastructure spending program at P1.51 trillion, equivalent to 5.3% of the GDP.

In the following months, the DBM said line agencies are expected to ramp up requests for release of allotments for their programs, activities, and projects in the second semester as implementation activities normalize post-election ban.

“These may also include unutilized cash allocations from the second quarter that line agencies can still request this second semester so they can process payments and make disbursements to suppliers or contractors for completed and delivered goods or rendered services,” it said.

Among the anticipated spending drivers for the succeeding months are progress billings from multiple finished or partially completed road and transport infrastructure projects and releases for defense modernization program.

“Increased infrastructure spending at around 5%-6% of GDP for the coming years, as also seen in recent years, would still lead to sustained growth in infrastructure spending,” Mr. Ricafort said.

Source: Business World

Investing in people’s health

In his fourth State of the Nation Address (SONA), President Ferdinand R. Marcos, Jr. underscored healthcare as a central pillar of national development, highlighting landmark reforms and programs designed to bring accessible, affordable, and equitable care to every Filipino.

A key focus of the President’s address was the mental well-being of Filipino youth. With growing concerns over bullying and depression in schools, he ordered the hiring of additional guidance counselors in public schools to ensure that students receive the psychological support they need.

The administration is also investing in early childhood development. President Marcos announced the allocation of P1 billion to establish Barangay Child Development Centers (CDCs) in 328 low-income barangays. These CDCs will serve as vital daycare hubs that monitor immunization, nutrition, and growth of children under six, while providing supplementary feeding.

“The top priorities are far-flung areas. And this is just the start,” the President said, vowing to address the lack of daycare centers.

To strengthen disease prevention and early intervention, the Department of Health (DoH) has been tasked to “fast-track its childhood immunization program” and ensure that all Filipino children are fully immunized as soon as possible. Complementing this directive is the launch of the YAKAP Caravan — short for Yaman ng Kalusugan Program Para Malayo sa Sakit. This enhanced version of PhilHealth’s Konsulta Program expands access to outpatient services, essential medicines, laboratory tests, and even cancer screening at accredited facilities.

Addressing the alarming rise in obesity rates, particularly among adults aged 20 and above, President Marcos encouraged Filipinos to embrace active lifestyles. He called on local government units (LGUs) to revitalize public parks and plazas and to organize activities such as sports competitions, fun runs, Zumba classes, and aerobics sessions.

To further promote wellness, the President called for an expansion of “Car-Free Sundays,” an initiative now practiced in several major cities including Metro Manila, Baguio, Cebu, Iloilo, and Davao. The Philippine Sports Commission (PSC) will also open its track and field ovals in Pasig City, Manila, and Baguio City to the public free of charge.

Improving access to urgent care was another top priority. The President reported that 53 Bagong Urgent Care and Ambulatory Services (BUCAS) centers have been established in 32 provinces. These intermediate healthcare facilities bridge the gap between rural health units and hospitals, offering services such as minor surgeries and diagnostic testing. Over a million Filipinos have already benefited from BUCAS services between March 2024 and March 2025.

Another milestone emphasized in the SONA was the enhanced PhilHealth (Philippine Health Insurance Corp.) benefit packages rolled out under the Marcos administration.

Notably, the Z benefits package for kidney transplants was increased by more than 230%, from P600,000 to P2.1 million. In addition, the number of covered hemodialysis sessions has been raised from 90 to 156 annually, effectively covering the standard thrice-weekly dialysis regimen for a full year.

“For patients requiring dialysis, your thrice-weekly sessions and medicines are now free for the whole year. If a kidney transplant is needed, we have raised the coverage… and starting this year, PhilHealth will also cover health services and medicines after the kidney transplant,” the President said.

Other improvements to the PhilHealth Z benefits include coverage for major cardiac procedures such as heart valve replacements and post-surgical cardiac rehabilitation. PhilHealth has also raised coverage for severe dengue from P16,000 to P47,000 and for mild dengue from P10,000 to P19,500.

PhilHealth benefits for cataract surgery have significantly increased as well, from P16,000 to P80,000, expanding access to vision-restoring procedures for senior citizens and vulnerable groups. Persons with disabilities (PWDs) have also received added support, with PhilHealth now covering mobility devices like wheelchairs, walkers, and crutches, as well as rehabilitation services. The national government continues to shoulder PhilHealth premiums for all PWDs.

For cancer patients, the administration continues to implement the Cancer Assistance Fund (CAF), a DoH program mandated by the National Integrated Cancer Control Act (NICCA). The government has also earmarked an additional P1.7 billion for cancer medicines not yet covered by PhilHealth. President Marcos also affirmed support for human papillomavirus (HPV) vaccination, which helps prevent cervical and other HPV-related cancers.

A commitment reiterated by the President is the continuation of the Zero Balance Billing (ZBB) policy in DoH hospitals. Under this scheme, patients no longer need to worry about settling their hospital bills, as expenses for basic accommodation are covered in full by PhilHealth and government funds. This initiative ensures that patients and their families are not burdened by the financial complexities of healthcare access during critical times.

Through these sweeping reforms, President Marcos reaffirmed his administration’s vision of a healthier, more resilient Philippines. By addressing gaps in mental health, childhood care, disease prevention, and treatment affordability, the government is investing not only in people’s health but in the nation’s future.

Source: Business World

Philippines aims for single-digit poverty by 2028

The government remains optimistic about bringing down poverty to single-digit levels by 2028 even after lowering its economic growth targets.

Slower growth often poses difficulties for poverty reduction, the Marcos administration acknowledged, but stressed that recent progress supported a decision to retain existing goals.

“While we lowered our growth targets, we remain optimistic about reducing poverty rates to single-digit levels by 2028,” the updated Philippine Development Plan (PDP) released late Saturday states.

“While slower economic growth typically poses a challenge to reducing poverty, the recent achievement provides a strong rationale for retaining current poverty targets,” it adds.

Economic managers in June cut this year’s growth target to 5.5-6.5 percent from 6.0-8.0 percent, taking into account recent economic developments and external headwinds.

For next year until 2028, growth is also expected to range within a narrower 6.0-7.0 percent range instead of 6.0-8.0 percent.

“Coupled with the administration’s sustained focus on key priorities, such as health and food security, we expect the impact of growth to be more inclusive and pro-poor, supporting the attainment of our poverty targets,” the PDP states.

Data from the Philippine Statistics Authority (PSA) shows that the proportion of Filipinos living in poverty dropped to 15.5 percent in 2023 from 18.1 percent in 2021. The government expects this to further decline to between 12-13 percent this year.

By 2027, poverty incidence is projected to fall within 10-11 percent, slightly wider than the earlier forecast of 10-10.3 percent. The target for 2028 was also expanded to 8.0-9.0 percent from the previous range of 8.8-9.0 percent.

‘Intensifying efforts’

“Poverty incidence continues to fall, and we are intensifying efforts to ensure that the benefits of economic growth reach all regions and communities,” Socioeconomic Planning Secretary Arsenio Balisacan said.

He said the government was looking to improve the efficiency of social assistance programs by developing a dynamic social registry and refining targeting protocols.

To further empower beneficiaries of “ayuda” or aid programs, Balisacan said that these would be connected to financial literacy and employment facilitation initiatives to help build resilience and the ability to withstand future shocks.

Moreover, transformative social protection is expected to empower individuals and households to rise out of poverty by addressing underlying vulnerabilities and promoting sustainable livelihoods, rather than simply offering temporary relief.

“By strengthening systems that build resilience, it helps prevent people — especially the most vulnerable and marginalized — from falling into poverty when exposed to shocks and risks,” Balisacan said.

Income goal ‘within reach’

The Department of Economy, Planning and Development chief, meanwhile, also said that the country was poised to become an upper-middle-income economy.

“Achieving upper-middle-income status is no longer a distant aspiration — it is now within reach,” Balisacan said.

“Nonetheless, we still have much to do,” he added.

The country’s gross national income (GNI) per capita has risen steadily, from $4,010 in 2022, $4,320 in 2023 and $4,470 in 2024, falling $26 short of achieve the income status that requires a GNI per capita ranging from $4,496-13,935.

“This upward trend surpassed our PDP targets and brought us within reach of the upper-middle-income country threshold, currently set at $4,496,” Balisacan said.

Under the previous development plan, the government set a target of raising GNI per capita to between $4,814 and $4,920 this year. This goal remains unchanged in the updated plan.

For 2026 to 2028, however, targets were revised downward.

The 2026 GNI per capita projection was lowered to a range of $5,124-5,210 from $5,256-5,563. For 2027, this was cut to $5,452 -5,589 from $5,645-6,056, while the 2028 target was adjusted to $5,882-6,081 from $6,044-6,571.

“The country’s progress toward upper-middle-income status will be accompanied by meaningful advances in social development,” Balisacan said.

The government remains committed to advancing human development and building a more dynamic, inclusive labor market, he added.

By diversifying the drivers of economic growth, the aim is to improve job quality and provide more stable, productive, and dignified employment opportunities for Filipinos.

Source: Manila Times