MANILA, Philippines — The Marcos administration intends to fast-track the implementation of projects in the second half of the year and raise infrastructure spending, officials said, following the economic team’s decision to cut this year’s growth target because of the effects of the Middle East war and the flood control scandal.
The global oil crisis and underspending prompted the government to lower its growth target for this year to 3.5 to 4.5 percent from five to six percent, but it remains optimistic that the country’s economic performance would improve in the second half.
Executive Secretary Ralph Recto cited the need to fast-track the implementation of government projects in the second half during a recent meeting with state agencies that sought to review the implementation of their budgets.
“We need to closely track the execution of the 2026 budget and finalize the 2027 national budget,” Recto said in a statement.
“Let us get our act together and ensure that our programs and projects are delivered faster in the second half of the year,” he added.
Palace press officer Undersecretary Claire Castro said the government needs to spend more, admitting that the budget department became too cautious last year because of the multibillion-peso corruption scandal involving flood control projects.
“The DBM (Department of Budget and Management) was too careful last year because of the anomalous flood control projects. So the government did not spend immediately. Thorough studies were conducted and the funds were not released easily. That was one of the reasons why the economic growth of the country became weaker,” Castro said at a press briefing yesterday.
“Now, under the leadership of (Budget) Secretary Kim de Leon, there is really a need to spend, especially on infrastructure. The expenditure on infrastructure decreased because of the issues on the flood control mess,” she added. Citing the budget department, Castro said the government also intends to pursue “strategic, high-quality public investments supported by stronger project preparation, integrated infrastructure master planning and improved budget execution to sustain long-term growth.”
“The government recognizes the recent external and domestic developments including geopolitical uncertainties and the need to strengthen governance and quality in infrastructure implementation require a measured policy response,” she added.
The Philippine economy expanded by a lower-than-expected 2.8 percent in the first quarter as it took a hit from weaker investor confidence caused by the flood control controversy and higher fuel costs triggered by the war in the Middle East. The growth was slower than the 5.4 percent expansion posted in the same period last year and the three percent expansion posted in the last quarter of 2025.
Meanwhile, Rep. Edgar Erice of the Liberal Party said seeking accountability for the multibillion-peso budget scandal and the flood control controversy should not be hampered by a possible forging of alliance between the LP and the Marcoses.
“The Liberal Party has always stood for transparency, accountability, and good governance. We cannot abandon these principles for the sake of political convenience,” Erice said.
“Until the Filipino people are given the truth, those responsible are held accountable, and public confidence in our institutions is restored, any alliance with the Marcos administration would not simply be a political decision – it would be a test of the LP’s integrity, principles, and fidelity to the values it has always professed,” he said.
“What makes this issue even more compelling is that President Marcos himself was the first to publicly raise concerns about irregularities in flood control projects. He promised to determine the truth and hold accountable those responsible,” Erice recalled.
“Unfortunately, despite those commitments, the Filipino people have yet to see a comprehensive accounting of what actually happened or who has been held responsible,” he added. – Delon Porcalla