The government says it is spending less on infrastructure because it is checking the paperwork. The economy says it noticed.
Infrastructure capital outlays reached ₱457.0 billion in January to July 2026, down ₱256.5 billion, or 36%, from the same period in 2025, according to Department of Budget and Management (DBM) data reported by the Daily Tribune (Toby Magsaysay, Oct. 5). July alone was ₱89.6 billion, down ₱3.7 billion, or about 4%, from ₱93.3 billion a year earlier, a far smaller dip than the 40.8% drop recorded in June.
DBM's explanation
The Tribune reports that DBM attributed the lower level partly to reduced Department of Public Works and Highways (DPWH) disbursements, citing stronger procurement compliance, project monitoring, and review of payment claims and contractor documents, to ensure payments are backed by verified, documented work. DBM said infrastructure work continued in defense modernization, rail and mass transit, and school and farm infrastructure.
That explanation is plausible given the flood-control scandal that has dominated the past year. But it also amounts to a concession: the checks that make payments defensible now are slowing the money, and DBM, as reported, offered no figure for how much of the ₱256.5-billion gap is deliberate scrutiny versus plain delay.
The economic cost
According to the Tribune, GDP growth slowed to 2.3% in the second quarter, with economists citing delays in government infrastructure spending. Growth has slowed for four consecutive quarters since President Marcos raised flood-control anomalies in his 2025 State of the Nation Address, and the Asian Development Bank and other multilateral lenders have cut 2026 and 2027 growth forecasts, citing slower infrastructure spending and the global oil shock.
Promises and what's left to prove
In August, the Tribune says, President Marcos said public spending was "on track" and predicted spending would exceed last year's levels by the final quarter of 2026. ADB Country Director Andrew Jeffries said there were early signs of more outlays, including large transport projects, and an intent to restore public investment. DBM's June statement named expected recovery drivers: more DPWH operating requirements, DepEd school facilities, Department of Agriculture farm-to-market roads, revised AFP modernization projects, and Department of Transportation settlement of payables on foreign-assisted rail.
Arithmetic check: with ₱457 billion spent through July, to merely match last year's pace by year-end, the final months would have to run well above July's ₱89.6 billion, which itself was still below the prior year. The coverage does not say what monthly figure DBM expects, and the President's prediction was not accompanied by a published target.
What is still unknown
August data had not been included in the coverage reviewed. DBM did not break down the decline by agency in the report, so DPWH's exact share of the shortfall is not stated.
Context
Pulpulitiko has reported on the House's 2027 budget rewrite, which added ₱8.04 billion to flood-control structures, and on the cuts to Japan-funded rail. Those decisions rest on whether agencies can actually spend what Congress gives them.
Sources
- Daily Tribune, "DBM: Infrastructure spending still down 36 percent," Toby Magsaysay, Oct. 5, 2026 — https://tribune.net.ph/2026/10/05/dbm-infrastructure-spending-still-down-36-percent