The government will put 500 million Philippine pesos (9.8 million US dollars) for the work in the coming five months, and another one billion pesos (19 million US dollars) in 2018.
The ongoing siege in Marawi, which saw armed conflict between Philippine government security forces and ISIL-affiliated groups including the Maute and Abu Sayyaf, began on May 23.
Official said around 1,800 people were saved in total and 45 killed, but warned the death toll may rise further.
With only seven days left to the end of Duterte's martial law, the military is now assessing the situation to judge if an extension is necessary.
