Department of Public Works and Highways (DPWH) Secretary Vince Dizon has publicly accepted the significant reduction in his agency's proposed 2026 budget, emphasizing that proper and clean implementation of projects is more crucial than the total fund amount.
Budget Cut Amid Scrutiny on Flood Control Projects
The final budget approved for the DPWH for the fiscal year 2026 stands at P529.6 billion. This figure was confirmed by the bicameral conference committee following intensive deliberations on the national expenditure plan. The approved sum is markedly lower than earlier proposals.
It is P40.88 billion less than the Senate-approved version of P570.48 billion and a substantial P94.88 billion below the House of Representatives' General Appropriations Bill, which allocated P624.48 billion. The original request from the DPWH in the National Expenditures Program was much higher at P881.31 billion.
A key factor in the reduction was the removal of funding for locally funded flood control projects. This move came amid an ongoing investigation into alleged anomalies within such infrastructure initiatives.
Secretary Dizon's Stance on Clean Governance
In a press conference held on Thursday, December 18, 2025, Secretary Dizon addressed the budget cut directly. "That's okay because I believe, the President believes, and Congress also believes that what's important about the budget is that it is clean and implemented properly," Dizon stated.
He further clarified the department's philosophy, adding, "The budget in itself is not bad. What is bad is when the projects in the budget are turned into ghost projects, made substandard, or used merely for personal gain." This statement aligns with President Ferdinand Marcos Jr.'s October directive for all government agencies to slash project costs by at least 50% to eliminate opportunities for overpricing and corruption.
How Savings Were Generated and Realigned
A significant portion of the savings was achieved through the application of the Construction Materials Price Data (CMPD). Senator Sherwin Gatchalian, chairman of the Senate finance committee, explained that the DPWH, under Dizon's leadership, provided CMPD for approximately 10,000 projects. This official, regularly updated price list for construction materials standardizes costs and ensures transparency.
The application of this data resulted in P20.7 billion in savings. These funds were then reallocated to other critical national needs:
- P16.52 billion was transferred to the Philippine Health Insurance Corporation (PhilHealth) to bolster the country's healthcare financing.
- P4.25 billion was added to the National Disaster Risk Reduction and Management Fund, enhancing preparedness and response capabilities.
The DPWH had initially sought the restoration of the deducted amounts following adjustments in the CMPD. However, the final decision from the bicameral committee upheld the realignment, prioritizing health and disaster resilience while maintaining the infrastructure department's core funding for next year.
