By Justine Irish D. Tabile, Senior Journalist
DISPOSAL OF THE WOMAN it was down 35 percent year-on-year in May enhanced review and validation procedures, according to the Department of Budget and Management (DBM).
At the same time, experts have warned that the government’s long-term underspending could hamper economic growth and urged the Marcos administration to restructure the implementation of infrastructure projects and curb the fight against corruption. efforts to stop the use of public money.
In its latest National Government disbursement report, DBM said infrastructure and other funds fell by 35.3% to P80.1 billion in May from P123.8 billion in the same month in 2025.
“The year-on-year decrease primarily reflects the implementation of strengthened review, audit, and verification procedures for infrastructure payment claims, as well as contractor compliance requirements,” the DBM statement said.
“These improved safeguards have affected the timing of the release of certain infrastructure funds, especially for the Department of Public Works and Highways (DPWH) projects,” it added.
Month-on-month, infrastructure spending increased by 93.1% from P41.5 billion in April.
In the first five months of the year, infrastructure and other capital expenditure decreased by 42.9% to P269.4 billion from P471.5 billion in the same period last year.
The DBM stated that this decrease was due to “the implementation of improved management measures and strict procedures for the review and verification of infrastructure projects, following the government’s strong efforts to strengthen accountability and ensure the prudent use of public funds.”
“These measures affected the timing of DPWH’s infrastructure rollout while strengthening the protection of public spending,” it added.
Francisco Cid L. Terosa, associate professor and former dean of the University of Asia and the Pacific (UA&P) School of Economics, warned that weak infrastructure use could be hurt. economic growth in the second quarter.
“Continued weakness in infrastructure spending could reduce second quarter GDP growth by about 2 to 3 percentage points compared to second quarter GDP growth in 2025,” he said. BusinessWorld via Viber.
The Philippine Statistics Authority will release the first data for the second quarter of GDP on Aug. 7.
Although spending may increase as the release accelerates, Mr. Terosa said that “higher energy prices and tighter financial conditions and higher borrowing costs… could reduce the effects of cost overruns.”
“Infrastructure spending should grow by 10 to 15% on average throughout the year to meet the annual growth target of 3.5 to 4.5%,” he added.
The Development Budget Coordination Committee predicted that the economy will grow by 3.5%-4.5% this year, lower than its previous projection of 5%-6%.
CONTINUATION NEEDED
“The National Government will have to reform its implementation processes at the implementation level to reduce leakages,” UA&P economist Marco Antonio C. Agonia said in an email.
“There are already regulations in place that are supposed to prevent these things from happening, but if the ‘rules of the game’ that create loopholes for local bid-rigging and weak oversight continue, some high-level reforms may be limited.”fecacy,” he added.
Mr. Agonia said the government should consider allocating the budget based on the capacity of the organizations instead of using money based on political considerations.
“The slowdown in infrastructure spending, while clearing the framework, has also hurt the prospects for economic growth,” said Mr. Agony.
Jonathan L. Ravelas, a senior consultant at Reyes Tacandong & Co., said the government must demonstrate that its anti-corruption campaign must not undermine growth.
“What is needed is a system that quickly identifies and removes questionable projects while accelerating those that are transparent, economically sound, and ready for implementation,” he said in a Viber message.
Sir Percival K. Peña-Reyes, a senior researcher at the Ateneo Center for Economic Research and Development, said the government should avoid treating the fight against corruption and the use of infrastructure as competing goals.
He said strict procurement monitoring and investigations during the Aquino administration improved governance in some ways but also contributed to delays in implementation, declining public spending and weak economic growth during its early years.
“The lesson is not that anti-corruption efforts should be relaxed, but that they should be designed so as not to hinder the delivery of the project,” said Mr. Peña-Reyes.
Infrastructure spending has one of the highest returns on investment in the Philippine economy because it creates jobs, raises demand for domestic goods and boosts long-term productivity, he said.
Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said accountability and infrastructure use should go hand in hand.
“The important thing is to investigate wrongful projects while allowing legitimate, high-impact projects to continue,” he said. “Good governance should advance, not delay, public investment.”
Mr. Peña-Reyes said the ongoing leakages despite changes in budgeting, procurement and transparency show that the problem is no longer primarily the absence of laws but weaknesses in operations and institutions.
He said procurement reforms have made the system more regulatory-based, but too many safeguards can cause problems ifficials are overly cautious when making decisions.
“The result is slow implementation of the project without eliminating the possibility of corruption,” he added.
The power of the institutions also remains unequal in all the functional agencies and local government units, said Mr. Peña-Reyes.
Corruption risks also emerged beyond direct procurement fraud, with leakages resulting from inflated cost estimates, excessive flexible orders, weak contract monitoring and poor quality implementation, he said.
Such actions are often very differentfto see them because they may happen after the contracts are officially issued.
Mr. Peña-Reyes said the reforms should focus on making procurement and project management more efficient, increasing digital monitoring and ensuring that accountability mechanisms work quickly and predictably.
“The goal should be a clean and efficient system – one that prevents leaks while still delivering infrastructure on time and supporting economic growth,” he said.
‘ALL PESOS MUST WORK HARD’
Mr. Rivera said the government must ensure that “every peso must bring the greatest value to the community” within the limited financial space.
“Productive investments such as infrastructure, education, health, agriculture, and climate resilience should be initiated while strengthening project evaluation, transparency and monitoring to ensure value for money,” he added.
Mr. Ravelas said the government should prioritize clean and high-impact investments in infrastructure, flood control, food and energy security, logistics, and digital connectivity.
“At a time when global uncertainty, including tensions in the Middle East, is putting pressure on growth and financial services, every peso must work harder. The goal is not just to spend more money or spend less money, but to spend money wisely, quickly, and cleanly to maintain growth, create jobs, and strengthen public trust,” he added.
Mr. Agonia said the government should pursue long-term, high-recurring investments such as major infrastructure projects and human development programs while making budget documents transparent and accessible.
He said the government can also use the public-private partnership framework to coordinate with financially capable organizations to implement these programs.
“This is very pressing now that the Philippines may lose its concessional financing arrangements with international organizations following its rise to the status of a middle income country,” he added.
TRANSPORTATION PROJECTS
The Marcos administration should also speed up transportation projects after years of delays.
“The management cannot afford another way. The journey must end by recovering the power we had,” said Rene S. Santiago, an international consultant on transportation development and former president of the Transportation Science Society of the Philippines, in a Viber message.
Mr. Santiago urged the government to prioritize feasible transportation projects, stressing the need to adopt existing solutions that directly address transportation problems, such as deploying electric buses.
Transportation Acting Secretary Giovanni Z. Lopez said the government is working to accelerate its projects to ensure the timely completion of transportation projects.
“The tunnel from Valenzuela to Quirino Avenue Station (of the Metro Manila Subway project) has been completed, as well as North Avenue to Tandang Sora Station. This means we are prioritizing big-ticket projects,” said Mr. Lopez in a Viber message.
Tunneling work on key parts of the Metro Manila Subway project has been completed, pushing the completion rate to 60%.
“We can expect the completion of the project in 2028. Before the end of Mr. Marcos’ term, the (two) stations from Valenzuela to Quirino will have a protest,” said Mr. Lopez.
Meanwhile, the Institute for Climate and Sustainable Cities Urban Mobility Campaigns Officer Amber Garma said the Philippines should also focus on increasing effective transportation projects, as well as improving the country’s transportation systems.
Ms. Garma urged the government to increase funding for transport, saying higher investment is needed to improve infrastructure and reduce passengers from rising fuel costs and price volatility. – with Ashley Erika O. Jose
