Government cuts spending on infrastructure for 4th month

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December 29, 2025 | 12:00am

As flood scandal deepens

MANILA, Philippines — The national government’s infrastructure spending fell for the fourth consecutive month in October as concerns over reports of corruption in flood control projects continued to weigh on disbursements.

Infrastructure spending in October amounted to P65.9 billion, down by 40 percent from last year’s P110 billion, based on data from the Department of Budget and Management.

The DBM said the decline was due to the non-submission of billings by contractors, as authorities continue to conduct validation procedures to determine the actual status of implementation and completion of flood control projects.

“Delays in the renewal of contractors’ Philippine Contractors Association Board licenses affected the submission of progress billings by contractors and subsequent processing of payments,” the DBM said.

The sluggish pace of disbursement in October marked the lowest level of government spending since April this year.

The DBM added that adverse weather conditions during the period also had an impact on infrastructure spending. The decline was also attributed to the pending release of final payments due to delays in contractors securing Bureau of Internal Revenue tax clearances.

It also reflected a sustained downturn in government expenditures, as infrastructure spending continued to decline since July this year.

In the 10 months to October, government spending on infrastructure remained behind by 13.7 percent to P943 billion, which marked a decrease of P149.4 billion from P1.092 trillion in the same period a year ago.

Aside from the flood control issue, several factors contributed to the lower infrastructure spending, including the Commission on Elections’ 45-day ban on public works spending from March 28 to May 12.

According to the DBM, lower infrastructure spending is expected to continue weighing on overall government disbursements for the rest of the quarter as the Department of Public Works and Highways intensifies efforts to address corruption issues.

“Nonetheless, personnel services expenditures, maintenance and other operating expenses, as well as transfers to local government units, were seen to drive government spending for the remaining months of the year,” DBM said.