THE government failed to meet its infrastructure spending target last year amid tighter financial controls resulting from the public works corruption scandal, the Department of Budget and Management (DBM) said on Wednesday.
Data showed infrastructure and capital outlays for 2025 dropped by 17.3 percent to P1.09 trillion from P1.33 trillion in 2024.
Programmed spending for 2025 was P1.35 trillion.
“The underperformance resulted from the stricter verification of infrastructure projects and validation of payments by the Department of Public Works and Highways (DPWH) because of the corruption issues, while adverse weather conditions also affected the implementation and completion of other infrastructure activities,” the DBM said.
The corruption scandal broke shortly after President Ferdinand Marcos Jr. went public with a list of contractors delivering substandard projects that have worsened flooding in Metro Manila and other parts of the country.
The exposé led to firings and resignations at DPWH, leadership changes in the House of Representatives and a Cabinet revamp that cost Amenah Pangandaman her post as budget secretary.
Those directly involved in the scandal, however, have yet to be charged or jailed, and public anger has yet to dissipate despite government promises of reforms.
For this year, public capital expenditure is set at P1.58 trillion or 5.1 of gross domestic product.
In December alone, infrastructure and other capital outlays fell by 27.9 percent to P105.8 billion from P146.7 billion in December 2024.
“The decrease was moderated by the disbursements of the Department of National Defense for its Revised Armed Forces of the Philippines Modernization Program, as well as payments made for building construction,” DBM said.
“Similarly, direct payments made by development partners for foreign-assisted projects, such as the Manggahan Floodway Bridges Construction Project and the Laguna Lakeshore Road Network of the DPWH, as well as the North-South Commuter Railway Project of the Department of Transportation, helped temper the decline in capital expenditures,” it added.
Budget officials said spending growth in the first half of 2026 may slow due to high base effects from large capital outlays last year, when payments of accounts payables were settled, and some spending was front-loaded ahead of the election ban.
“Nonetheless, disbursements for the year would be mainly driven by human capital development and agriculture expenditures, particularly in the education, health and social services sectors, given their higher budgets this year,” DBM said.
“Programs that seek to help address the adverse impact of the Middle East conflict are also seen to buoy spending this year.”