Philippine infrastructure spending clay It is the third straight month in September, as public works projects continue to scrutinize strongly amid the scandal of fraud, said the Department of Finance and Management (DBM).
In its latest recovery report on Sunday, the DBM said that infrastructure spending and other expenses from infrastructure declined by 42.6 billion in September billion in the same month last year.
Month-on-month, it increased by 7.2% from P84.9 billion in August. This marks the third consecutive decline in infrastructure spending from 31.6% in July.
“Expenditure of the Department of Public Works and Highways (DPWH) continued to register a negative growth rate for the third straight month from July 2025,” DBM said.
President Ferdinand R. Marcos, JR. he criticized the anamalous flood control projects during his state of the nation address in late July. This sparked several investigations into fraud involving law enforcement, the government ofefIcons, and independent contractors.
DBM revealed that the SPRIGH PROP in infrastructure work in September to delay or import the billing of contractors such as international projects. This affected the processing of payment requests and originals distribution by dpwh, added.
“You are right to scrutinize the agency, such as the Office of the Ombudsman, the Commission on Audit, the Bureau of Internal Revenue, and the Department of Finance and Administration,” it said.
The DBM said there was also a free carse order on certain DPWH bank accounts usingefgrasshoppers, which were on the paper.
Bad weather in September also hampered the implementation of projects, he added.
“Nevertheless, the payments to the local partners of foreign aid projects in the Department of Transportation and the RAFPMP (Revised Forces Modernization Program of the Philippines) of the DND (Department of National Defense) are partially covered by the decline in infrastructure,” the budget department said.
Reinilielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said in a Viber message that the use of infrastructure in September.
RIMAL Commerce Banking Corp. The Economist Economist allowed that the decline of years of difficulties in the performance of infrastructure in the government’s use of anti-flood measures among flood control projects.
“One of the funds (could be answered by other social agencies such as the Department of Social Affairs and Development (DSWD), the Department of Agriculture among others,” he said in a Viber message.
Mr. Ricafort also noted weather-related disruptions, such as hurricanes and earthquakes, reduced the number of business days in September.
A period of nine months
In the January-September period, infrastructure and capital outlay disbursements stood at P877.1 billion, down 10.7% from P982.4 billion last year. This accounted for 87.4% of the annual P1.0036-Trillion Ofpillion program.
“(This) is largely due to the low spending of the DPWH. This follows a strong verification of the status of implementation, quality and completion of infrastructure projects throughout the country amid fraud problems,” DBM said.
In the third quarter alone, distribution fell by 30.7% to P256.9 billion from P370.6 billion in the same period in 2024.
Data from the DBM showed total infrastructure distribution, which includes subsidized infrastructure components and transfers to local government units, transferred to local government units, added 7.6% to P1.14 billion last year.
The Department of Budget said that the decrease in the DPWH’s visibility cut 1.3 percent from the Count-Country’s 2025 Gross Domestic Government Domestic (GDP) growth.
The Philippine economy grew by 4% in the third quarter, the slowest growth seen in more than four years or since the first quarter of 2021.
This brought the ninth month to 5%, falling short of the government’s 5.5% to 6.5% Target.
Economists have stressed that the spending spree will be temporary as reforms and investigations continue.
However, analysts have warned that the drag on economic growth could continue until 2026 unless the government enforces governance reforms and those behind flood mitigation projects.
Mr. Erece said that spending can always be overcome in the near future.
“It is difficult to say whether an improvement can be expected next year given the decline in public confidence and the approval of the next year’s budget as they are being scrutinized with every share, espeEspecially with infrastructure,” he said.
During the federal debates on the 2026 budget, Sherwin T. Gatchalian said that infrastructure spending is expected to reach 4.7% of GDP in 2026, down from the Federal Government’s 5.1% amid fraud investigations.
Mr. Ricafort said the recovery in infrastructure spending will depend on changes in governance.
“Kung Walang The danger of deception, Tuloy Ang Infrastructure spending (if there is no risk of fraud, infrastructure spending will continue), he said.
Meanwhile, DBM said the higher cash flow is expected to be partly to cover what it sees as more public works going on.
“The capital expenditure is expected to be partially balanced by the end of the year with the implementation of many public works by the DPWH will resume before the implementation of administrative measures and cross-cutting measures,” it said.
DPHWH Secretary Vivencio “Vince” B. Dizon proposed on September 16 the moratorium on the purchase of goods for public works funded by money, as the agency imposed stricter compliance regulations.
This includes Livestreaming of bidding, traffic of projects, and traffic behavior and verification of bridge information.
Other measures to cover the coding and verification of project data in the project and the request for contract management and the request for commercial activities, the prohibition of the division of the contract of financial power of Bidders.
The DBM earlier said the government is slated to release P1.307 Trillion in spending planned for the fourth quarter to boost growth, most of which is earmarked for social services. – Aubrey rose a. with a baby
