The Public Works department asked lawmakers on Sunday to restore about P45 billion cut from its 2026 budget, warning that the shortfall could slow construction activity and weigh further on an already cooling Philippine economy.
Public Works Secretary Vivencio B. Dizon was allowed to join a select group of senators and congressmen finalizing the proposed P6.793-trillion national budget — a rare move that underscored growing concerns that deep cuts to infrastructure funds could stall projects that have long propped up economic growth.
“We all know that in the past quarter, the economy only grew by 4%,” Mr. Dizon told members of the bicameral conference committee. “This is largely because of the cut in public expenditure, especially in infrastructure.”
He said President Ferdinand R. Marcos, Jr. had ordered him both to crack down on overpriced construction materials and ensure infrastructure spending accelerates given its central role in job creation and economic activity.
Mr. Dizon’s appeal comes as the agency enforces stricter procurement rules to prevent inflated costing of materials — an issue at the center of a widening corruption scandal tied to anomalous flood-control contracts.
The controversy has implicated several politicians, officials and contractors in a multibillion-peso kickback scheme that has dented confidence in the administration and contributed to a pullback in public works spending since July.
Congress has since pared down the Department of Public Works and Highways’ (DPWH) budget by hundreds of billions. The Senate’s version of the 2026 budget sets aside P570.8 billion for the agency, about 8.6% less than the P624.48 billion approved by the House of Representatives in October.
Earlier, congressmen cut P255 billion in flood-control allocations from the Executive’s proposed P880-billion infrastructure program, citing the investigations.
Mr. Dizon said the P45-billion restoration he is seeking would not revive any flood-control projects flagged in the kickback scheme. The money, he added, would instead support road, bridge and other infrastructure works risked by the Senate’s cuts.
“We request that we go back to the levels of the House General Appropriations bill, and let the DPWH implement the price adjustment to make sure that the deductions are correct and based per project,” he said. “It’s to make sure that the… integrity of the project is not compromised, and to make sure that they will still be implemented.”
The agency issued a department-wide order tightening procurement to prevent overpricing, Mr. Dizon said. Savings from lower materials costs, he added, would either be remitted to government coffers or redirected to other state programs at the President’s discretion. “Upon the President’s approval, it may be used to augment projects,” he said.
He also warned that several projects planned for 2026 would likely be delayed because the agency could not finalize allocations while potential adjustments to material pricing are still under review.
“Because early procurement was delayed, there are many projects for 2026 that will be delayed,” Mr. Dizon said. “We are not sure what projects will be passed by Congress.”
Scrutiny of next year’s national budget has intensified amid the scale of the alleged corruption in flood-control spending, fueling public protests and prompting lawmakers to adopt added transparency measures. These include livestreaming bicameral hearings that were traditionally held behind closed doors.
The bicameral conference committee must reconcile the Senate and House versions of the spending plan before transmitting the final budget to Malacañang for Mr. Marcos’ signature. Lawmakers will adjourn on Dec. 23 — later than originally planned — to ensure ratification of the appropriations bill.
Officials have until year-end to avoid a reenacted 2025 budget, which economists warn would further drag growth. — Kenneth Christiane L. Basilio