DBM tightens scrutiny of fund disbursements

Amid flood control scandal

MANILA, Philippines — The Department of Budget and Management (DBM) is now “extra cautious” in releasing public funds amid recent developments regarding alleged corruption in flood control projects within the Department of Public Works and Highways (DPWH).

While emphasizing the importance of public spending in driving economic growth, DBM Assistant Secretary Romeo Matthew Balanquit said there is a need to maintain a business-as-usual approach in disbursing the appropriated funds.

“Extra cautious because of the development that happened in the news. But at the same time, we cannot be overly cautious and withhold the money in our pocket because we will not be helping the economy,” he told reporters.

Balanquit earlier reported an underspending of P157 billion in the third quarter, attributing the shortfall primarily to delays and controversies surrounding the flood control projects implemented under the DPWH.

“So it is important that we just have to, again, make sure that it is business as usual to disburse the appropriated funds. Otherwise, our gross domestic product will go down because we are not able to contribute,” he said.

Balanquit said the heightened caution would continue in the fourth quarter and would mainly apply to flood control projects, while other sectors remain unaffected.

He added that official development assistance and major infrastructure projects would continue as planned.

“I think we have to really do that because we also have to ensure that we still have the public trust, not just by releasing money if the system is not really well in place,” Balanquit told The STAR in a separate interview.

The Philippine economy may miss its full-year growth target as sluggish revenue collection and reduced government spending continue to hamper the country’s expansion outlook, according to Finance Secretary Ralph Recto.

From January to August, the government’s spending on infrastructure went down by 5.6 percent to P798.4 billion, from P845.3 billion in the same period last year.