MANILA, Philippines — Senate President Sherwin Gatchalian has pledged tighter congressional scrutiny of the government’s massive infrastructure program as the Marcos administration attempts to accelerate public works spending without reopening the door to questionable projects and misuse of taxpayers’ money.
Gatchalian said the Senate would continue exercising strict oversight over infrastructure expenditures, putting accountability at the center of the government’s effort to revive spending on roads, bridges, transportation systems and other major public works.
His statement comes as economic managers face a delicate balancing act: speeding up infrastructure projects to support economic growth while applying tougher safeguards following controversies surrounding flood-control and other public works projects.
Infrastructure Spending Fell Sharply
Government infrastructure and other capital outlays dropped significantly during the first five months of 2026.
Department of Budget and Management data cited by the Philippine Star showed spending reached about ₱269.4 billion from January to May, down 42.9% from ₱471.5 billion during the same period in 2025.
In May alone, infrastructure and capital spending fell 35.3% year-on-year to ₱80.1 billion, compared with ₱123.8 billion a year earlier.
There was, however, a strong month-on-month recovery: May spending was almost double the ₱41.5 billion recorded in April.
The decline was not simply caused by projects being abandoned.
The DBM said strengthened auditing, review and validation procedures for infrastructure payment claims, along with stricter documentary requirements for contractors, have slowed some payments—particularly those involving the Department of Public Works and Highways.
Those safeguards became more prominent after the corruption controversy involving flood-control projects that erupted in 2025.
Government Still Wants Infrastructure Spending to Recover
Despite the slowdown, economic managers have repeatedly stressed that infrastructure remains essential to Philippine growth.
Earlier in August, Acting Budget Secretary Kim Robert de Leon said the government was working toward its roughly ₱1.3-trillion infrastructure spending program for 2026, saying economic managers were closely monitoring implementation and pushing agencies to accelerate procurement.
The latest fiscal figures, however, indicate a slightly lower projection.
Current DBM budget documents put 2026 national government infrastructure spending at around ₱1.27 trillion, equivalent to roughly 4.2% of gross domestic product, down from an earlier target of around ₱1.3 trillion or 4.3% of GDP.
That distinction is important: the ₱1.3-trillion figure was the government’s earlier spending target, while ₱1.27 trillion reflects the newer fiscal projection.
Gatchalian: Fight Corruption Without Freezing Development
Gatchalian has consistently argued that corruption investigations should not become an excuse to stop legitimate infrastructure investment.
Earlier this year, he warned that infrastructure spending has a major multiplier effect on the economy because construction projects create jobs, improve connectivity and stimulate activity in surrounding communities.
When infrastructure projects are delayed, he said, opportunities to generate employment and improve communities are delayed as well.
His position essentially puts the government between two competing risks.
Spending too quickly without adequate oversight could allow overpriced, poorly designed or questionable projects to slip through.
But tightening controls so much that legitimate projects grind to a halt could weaken investment and economic growth.
Gatchalian has said corruption should instead be addressed through accountability, prosecution and stronger oversight rather than by abandoning infrastructure programs altogether.
Why Infrastructure Spending Slowed
The infrastructure slowdown can be traced partly to more stringent reviews imposed after the flood-control controversy.
DBM data showed that infrastructure spending had already fallen 51.7% year-on-year in April to ₱41.5 billion, marking another month of contraction following the scandal.
By May, the government had recorded several consecutive months of year-on-year declines.
DBM said tighter validation of contractors’ claims and documentation increased the processing time for payments, particularly at the DPWH.
Still, not every infrastructure category slowed.
Spending related to the Armed Forces modernization program, foreign-assisted railway projects and Department of Education school-building projects helped offset some of the weakness in public works expenditures.
Bigger Infrastructure Questions Loom Over the 2027 Budget
The debate is becoming even more important as Congress examines President Ferdinand Marcos Jr.’s proposed ₱7.2-trillion national budget for 2027.
DBM’s latest budget documents indicate a more cautious approach toward infrastructure after the controversies surrounding public works.
The government’s national infrastructure spending program for 2027 is projected at about ₱1.34 trillion, or around 4% of GDP, lower than an earlier program of approximately ₱1.69 trillion.
At the same time, DBM says infrastructure investment under the broader Build Better More program remains a major government priority, covering roads, bridges, railways, transportation systems and water infrastructure.
The department has also said projects seeking inclusion in the 2027 budget should demonstrate implementation readiness, adequate absorptive capacity and complete project information as part of tighter anti-corruption safeguards.
The Real Test: Faster Spending Without Returning to Old Problems
For Gatchalian and economic managers, the issue is no longer simply how much the government spends.
The bigger test is whether the Philippines can restore the pace of infrastructure construction without sacrificing transparency and accountability.
Public works can create jobs, improve transportation and support long-term economic growth—but the economic benefits depend heavily on whether projects are legitimate, appropriately priced and actually completed.
The government’s challenge in the coming months will therefore be to prove that stricter scrutiny does not have to mean paralysis.
And as billions of pesos in new infrastructure appropriations come before Congress, Gatchalian’s promised tighter oversight could determine not only how quickly public works money moves—but whether taxpayers can trust where it ultimately goes.
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