President Ferdinand “Bongbong” Marcos Jr. has directed the Department of Public Works and Highways (DPWH) to reduce the cost of construction materials by as much as 50%, following a government review that uncovered significant overpricing in major infrastructure projects, including flood control initiatives.
According to the President, items such as asphalt, steel bars, and cement were found to be priced “by as much as 50% or even more in some egregious cases.”
“To ensure that the costs of DPWH will reflect the costs of the market and that the people’s money is correctly spent, I have directed the DPWH Secretary to bring down the cost of materials by as much as 50%,” Marcos said before departing for the Association of Southeast Asian Nations (ASEAN) Summit in Kuala Lumpur on Saturday.
Marcos said the directive aims to realign public spending toward essential social programs, estimating that ₱30 billion to ₱45 billion in savings could be generated from the move. These funds, he added, would be redirected to education, healthcare, and food assistance programs to benefit ordinary Filipinos.
The President’s order comes amid an ongoing probe into alleged anomalies and overpricing in multibillion-peso flood control projects, which have stirred concerns over corruption and accountability in government spending.
“The DPWH continues to review projects and contracts and to file cases against those who have perpetrated corruption,” Marcos said, emphasizing his administration’s commitment to holding both officials and contractors accountable.
In a related directive, Marcos also instructed the Bureau of Internal Revenue (BIR) to adjust its audit priorities, focusing more on questionable government projects rather than on small and medium enterprises (SMEs) that are compliant with tax laws.
The President said the Department of Finance (DOF) and the BIR are now reviewing measures to simplify and lower withholding tax rates and raise the ceiling for tax-exempt de minimis benefits from ₱5,000 to ₱8,000 per year.
“These changes are not just about numbers. They are about fairness and dignity in the workplace. Every Filipino worker deserves to benefit from the nation’s growth,” Marcos said.
Through these reforms, the President underscored his administration’s goal of promoting fiscal responsibility, transparency, and fairness, ensuring that every peso collected and spent by the government directly serves the Filipino people’s welfare.