MANILA, Philippines — The Marcos administration is proposing ₱1.47 trillion for infrastructure spending in 2027, a major increase that the government says is aimed at reviving economic activity, creating jobs and improving connectivity across the country.
The proposed amount is part of the ₱7.2-trillion 2027 National Expenditure Program (NEP) and represents about 4.4% of the country’s gross domestic product (GDP). It is also ₱178 billion, or 13.8%, higher than the ₱1.29 trillion infrastructure allocation under the 2026 General Appropriations Act.
But while the headline figure is bigger, the administration is also facing heightened scrutiny over how infrastructure funds will be selected, released and spent.
DPWH gets the biggest share
The Department of Public Works and Highways (DPWH) is set to receive the largest portion of the proposed infrastructure program, with ₱619.04 billion allocated specifically for infrastructure under the Build Better More program.
Separately, the entire proposed DPWH budget stands at ₱643.95 billion, up ₱113.05 billion, or 21.29%, from its ₱530.90-billion allocation under the 2026 GAA.
The distinction is important: the ₱1.47 trillion covers government-wide infrastructure investments, while the ₱643.95 billion figure refers to the DPWH’s overall proposed budget.
Where the money could go
The proposed 2027 infrastructure program includes major projects intended to improve roads, bridges, transportation systems, flood management and regional connectivity.
Among the flagship projects identified by the DBM are:
- Laguna Lakeshore Road Network Project — ₱35.21 billion
- Bataan-Cavite Interlink Bridge Project — ₱22.49 billion
- Davao City Bypass Construction Project, Package I — ₱11.96 billion
- Cebu-Mactan Bridge and Coastal Road Construction Project — ₱8.57 billion
- Pasig-Marikina River Channel Improvement Project, Phase IV — ₱8.54 billion
The Laguna Lakeshore project involves a proposed 37.6-kilometer primary road connecting Lower Bicutan to Calamba, while the Bataan-Cavite project involves a planned 32.15-kilometer, four-lane bridge across Manila Bay.
The Davao City Bypass, meanwhile, is a 45.5-kilometer, four-lane bypass road being supported by Japan, with completion targeted for 2028. The Cebu-Mactan project includes a 3.34-kilometer bridge and a 5.34-kilometer Mandaue Coastal Road and is targeted for completion in 2030.
Why the government is betting on infrastructure
The timing of the spending push is significant.
The Philippine economy grew only 2.3% year-on-year in the second quarter of 2026, its weakest quarterly growth since 2021, according to Reuters. First-half growth reached just 2.6%, below the government’s full-year target range of 3.5% to 4.5%.
The slowdown has been linked in part to weaker construction activity and domestic demand. Reuters reported that the government is looking to regain economic momentum after infrastructure spending was affected by a corruption controversy surrounding public works.
The DBM argues that infrastructure spending can generate economic benefits beyond construction itself by reducing travel and logistics costs, connecting communities to markets and creating employment opportunities.
But this time, scrutiny is much tighter
The bigger infrastructure allocation comes as the government attempts to address concerns over the implementation of public works projects.
The DBM said proposed infrastructure projects underwent evaluation and validation before being included in the 2027 NEP. Agencies are required to submit supporting documents, including feasibility studies, engineering requirements, procurement plans, right-of-way requirements and relevant permits, depending on the project’s stage.
Projects are also assessed based on their readiness, past budget utilization, expected results and ability of implementing agencies to actually deliver them.
This comes after lawmakers and government officials raised questions about questionable infrastructure allocations and the handling of flood-control projects.
Flood control remains a major pressure point
The proposed 2027 budget includes about ₱107.4 billion for flood-control projects, according to ABS-CBN. The amount has drawn attention amid the government’s continuing efforts to prevent irregular or so-called “ghost” projects.
Public Works Secretary Vince Dizon has also said the government is working to make infrastructure allocations more needs-based rather than disproportionately concentrated in Luzon.
At the same time, Dizon told lawmakers that the number of proposed DPWH projects for 2027 has fallen sharply to 11,395, compared with 17,861 in 2026 and more than 25,000 in some earlier years. He attributed the reduction partly to the removal of duplicate projects and other measures.
Dizon has also acknowledged that the slowdown in construction procurement has hurt the economy, while promising that most pending infrastructure contracts would be awarded by the end of September.
The bigger question: Can the government spend it properly?
The ₱1.47-trillion proposal represents a substantial commitment to infrastructure at a time when the Philippine economy needs stronger growth.
But the real test may not be the size of the allocation.
It will be whether the government can turn the proposed spending into completed, useful projects without repeating the problems that triggered the current scrutiny of public works.
The administration says safeguards are already being built into the process, including project validation, documentation requirements, regional consultations and monitoring during implementation.
The proposed 2027 budget still has to go through Congress, where lawmakers can scrutinize, amend and ultimately approve the spending plan.
And that is where the ₱1.47-trillion infrastructure push could face its most important test: not how much money is allocated, but where every peso ultimately goes.
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