The Marcos administration ramped up its infrastructure buildup last year, which helped fuel the steady growth momentum.

The Department of Budget and Management, citing the Bureau of the Treasury’s cash operations report, said public expenditures amounted to P5.336 trillion, which was 3.4 percent, or P176.6 billion, higher than in 2022. This exceeded the full-year target by 2.1 percent, or P107.8 billion.

Based on the report, the increase was primarily driven by the significant expansion in infrastructure and other capital outlays that reached P1.2 trillion, which was 18.7 percent larger year-on-year and 16.2 percent faster than the program.

“The robust performance was likewise mainly credited to the accelerated program implementation and fund mobilization of the Department of Public Works and Highways (DPWH) and the Department of Transportation (DoTr) during the last two quarters,” the DBM said.

“This was also supported by the direct payments made by development partners for the implementation of foreign-assisted rail projects of the DoTr,” it added.

Consequently, overall infrastructure disbursements were increased to P1.419 trillion, P140.5 billion (11.0 percent) higher year-on-year, and P126.2 billion (9.8 percent) above the program.

Further, spending for current operating expenditures, such as personal services and maintenance and other operating expenses, improved on the back of catch-up spending by major social departments.

On the other hand, the subsidy to government corporations was 18.4 percent (P36.9 billion) lower year-on-year and 23.8 percent (P51.0 billion) below the program, mainly due to the calibrated releases to PhilHealth, considering its favorable financial position and substantial cash holdings.

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DBM attributed the expansion in infrastructure and other capital outlays to the robust performances of the DPWH and the DoTr in accelerating program implementations and fund mobilizations in the last two quarters of 2023.

It also cited the payments made by development partners for the foreign-assisted rail transport projects of the DoTr.