Loren, Bam propose blanket cut in 2026 DPWH projects
Two senators proposed on Monday an across-the-board cut in all projects next year by the Department of Public Works and Highways (DPWH), in light of the systematic overpricing that have been brought up in corruption scandals.
Senators Loren Legarda and Bam Aquino floated this suggestion at a Senate subpanel on finance hearing the proposed 2026 budget for the DPWH.
Legarda first brought up the matter, asking Public Works Secretary Vince Dizon if he would consider it reasonable to implement a 25- to 30-percent cut on all infrastructure line items.
‘Corrective measure’
Legarda said this could be a “temporary corrective measure” in the 2026 budget, so that the 2027 funding would be more “scientific.”
“It seems only right that the changes should not happen in 2027. It can’t wait because the people have already paid taxes, and those taxes are what we use for the infrastructure we’re going to build. If we say, ‘Well, we didn’t do that, it’s still for 2027’—then I won’t be able to sign off on the 2026 General Appropriations Act if we don’t lower the prices of the line items,” Legarda said.
“This across-the-board move is a good indication that we are serious about reforming our budgetary process,” she added.
Dizon said some DPWH projects were indeed found to be overpriced by more than 20 percent.
But instead of sweeping cuts, a targeted budget adjustment would be better, he said.
“Prices are different in the National Capital Region, different in Cebu, different in Palawan, and different in Mindoro. But clearly, there is overpricing. So what we are doing now is going through them one by one—examining each region individually to identify which items are overpriced,” he said.
‘Remove the fat’
Aquino said the blanket cut might be warranted if the Senate does not see the agency doing more to address overpricing.
“Because if there’s overpricing, we won’t be able to sign off in good conscience knowing that the design and cost of materials are overpriced. But since the budget isn’t due until December—and as you know, it usually reaches the third week of December—there’s still time,” he said.
“Let’s take out the overpriced items, let’s focus on the right projects, and let’s do the right thing. Now, if that can’t be done, I will support a 20-percent cut in the budget just to make sure that fat—the one used for parking, kickbacks, and all sorts of things—is gone. Let’s go for the real, actual prices of these projects, because that’s what the people truly deserve,” Aquino said.
‘Red flags’
Meanwhile, finance committee chair Sen. Sherwin Gatchalian said there are 6,187 projects amounting to P271 billion in the current budget of the DPWH which fall under so-called “red flags.”
He identified these as Red Flag No. 1 (no station number), Red Flag No. 2 (duplicates), Red Flag No. 3 (multiple phases) and Red Flag No. 4 (reappearing projects).
Dizon agreed to Gatchalian’s condition on the submission of documents if “P271 billion worth of projects” will be retained in next year’s proposed budget of P625.7 billion.
The agency had earlier slashed P252.53 billion, allocating no funding for local flood control projects.
