The deliberation has begun for what would become the national budget of the Philippines for 2025.
The General Appropriations Act, or the GAA is now eyed to focus on the allocation of funds for public infrastructure. It is expected to continue as a priority in the country’s development agenda, with preliminary figures suggesting that around 5.5% of the proposed budget could lean towards infrastructure projects.
The increase comes at a slightly higher allocation for infra projects when compared to previous years, highlighting the government’s commitment to addressing the critical need for infrastructure upgrades and expansions across the country.
Public infrastructure in the Philippines has seen considerable attention over recent years with state-funded projects driving economic growth and improving public services. These include the Build Build Build Program which was encapsulated during the term of then President Rodrigo Roa Duterte.
As budget discussions commence, it is clear that significant challenges need to be addressed to ensure the success of these projects.
One of the most important areas of focus for the 2025 budget is transportation and mobility. The government is expected to continue funding major projects such as the North-South Commuter Railway and the Metro Manila Subway as crucial developments for alleviating traffic congestion and improving connectivity across the country.
These are part of the ongoing Build Better More (BBM) Program, which continues to prioritize infrastructure as a means to stimulate economic recovery and growth. Early reports indicate that the Department of Public Works and Highways (DPWH) and the Department of Transportation (DOTr) may receive around PHP 1.4 trillion combined, marking a slight increase from the previous year’s allocation.
Healthcare infrastructure also remains a critical priority. The 2025 budget is expected to include substantial funding for the construction and renovation of public hospitals and healthcare centers, particularly in underserved regions.
The government also reiterated its goal to build at least one specialty hospital in every region by 2028, with several new facilities planned for 2025. Preliminary budget proposals indicate that the Department of Health (DOH) may receive over PHP 160 billion to address both infrastructure needs and operational improvements in the healthcare system.
Education is another sector where infrastructure development is crucial. The ongoing shortage of classrooms and the need for upgraded educational facilities are expected to be addressed in the 2025 budget.
The Department of Education (DepEd) and the Commission on Higher Education (CHED) are likely to see an increase in their funding to support the construction of new schools and the renovation of existing ones. Early budget proposals point out that they could receive up to PHP 180 billion, reflecting the government’s focus on improving the learning environment for students across the country.
Disaster resilience continues to be a critical consideration in infrastructure planning. Given the Philippines’ vulnerability to natural disasters, the government is expected to allocate resources toward strengthening infrastructure against typhoons, earthquakes and floods.
Projects aimed at enhancing the resilience of government buildings, transportation networks and emergency response systems are likely to receive a considerable portion of the budget. Initial figures suggest that disaster resilience projects could be allocated with around PHP 80 billion in 2025.
However, challenges remain despite these promising figures. Budgetary constraints and competing priorities such as social services and debt servicing continue to pressure the government’s ability to fund all necessary infrastructure projects.
Additionally, the ongoing issues of project delays, corruption and mismanagement still pose as risks to the successful implementation of these state-funded initiatives.
As key players in the infrastructure sector, the DPWH, DOTr, and DOH, together with private contractors like DMCI Holdings, Megawide Construction Corporation and San Miguel Corporation (SMC) Infrastructure, will be at the forefront of executing these projects. Their performance will be critical as the 2025 budget deliberations unfold.
Looking ahead, the government’s long-term vision for public infrastructure includes the alignment of these projects with the Philippine Development Plan which will focus on sustainable growth, improved public services and enhanced disaster resilience.
The decisions that will be made in the 2025 budget will play an important role in shaping the future of the nation’s infrastructure.
