A critical warning echoed through the halls of power on Sunday as the Public Works department pleaded with lawmakers to reinstate P45 billion to its 2026 budget. The request wasn’t simply about numbers; it was a stark assessment of the potential impact on the nation’s economic trajectory, a trajectory already showing signs of slowing.
The unusual move of allowing the Public Works Secretary, Vivencio Dizon, to directly address the bicameral conference committee underscored the gravity of the situation. This wasn’t routine lobbying; it was a signal that deep cuts to infrastructure spending were viewed as a genuine threat to sustained economic growth.
Secretary Dizon pointed to the recent economic growth of just 4% in the last quarter, directly linking it to reductions in public expenditure, particularly in infrastructure. He emphasized that infrastructure isn’t merely about concrete and steel, but a vital engine for job creation and overall economic activity.
President Marcos Jr. has issued a dual mandate to Dizon: aggressively combat inflated construction material costs and simultaneously accelerate infrastructure spending. This delicate balance is crucial, demanding both fiscal responsibility and a commitment to projects that fuel the economy.
The appeal for budget restoration comes amidst a tightening of procurement rules, a direct response to a widening corruption scandal involving anomalous flood-control contracts. This scandal, implicating politicians, officials, and contractors in a multibillion-peso kickback scheme, has shaken public trust and led to a slowdown in public works spending since July.
Congress has already significantly reduced the Department of Public Works and Highways’ proposed budget, with the Senate’s version allocating P570.8 billion – a substantial decrease from the House’s initial approval of P624.48 billion. Earlier cuts had already slashed P255 billion from flood-control allocations alone.
Dizon clarified that the requested P45 billion isn’t intended to revive projects already implicated in the corruption scandal. Instead, it’s a lifeline for ongoing road, bridge, and other vital infrastructure projects jeopardized by the Senate’s cuts, ensuring their completion and continued economic benefit.
The Secretary proposed a return to the House’s original allocation levels, coupled with rigorous price adjustments to ensure accurate project costing. This approach, he argued, would safeguard the integrity of projects and guarantee their successful implementation.
A department-wide order has been issued to tighten procurement processes, preventing the overpricing of materials. Any resulting savings, Dizon assured, would be returned to government coffers or strategically reinvested in other state programs, at the President’s direction.
However, a looming consequence of the budget uncertainty is project delays. The inability to finalize allocations while material pricing adjustments are under review is already hindering early procurement, pushing planned 2026 projects into jeopardy.
The scrutiny surrounding the 2026 national budget has intensified, fueled by public outrage over the alleged corruption and prompting lawmakers to embrace greater transparency. This includes the unprecedented livestreaming of traditionally closed-door bicameral hearings.
The bicameral conference committee now faces the critical task of reconciling the Senate and House versions of the budget before submitting it to President Marcos for his signature. Lawmakers have extended their session to December 23rd to ensure the appropriations bill is ratified.
The urgency is palpable. Officials are racing against the clock to avoid a reenacted 2025 budget, a scenario economists warn would further stifle economic growth and potentially derail the nation’s progress.
