The slowdown in government infrastructure spending following the multibillion-peso flood control controversy contributed to the Philippine economy’s weaker 2.3% growth in the second quarter, according to Senate Deputy Majority Leader JV Ejercito.
Ejercito, who heads the Senate Committee on Finance, said the public’s anger over alleged irregularities in the government’s flood mitigation projects was understandable, particularly as the controversy resulted in closer scrutiny of public works spending.
“Dahil sa nangyaring biggest scandal… hindi mo rin masisisi ang taong bayan. Makita ba naman yung limpak-limpak na salapi nasa mesa, mapupunta lang sa [korapsyon]?” Ejercito said in a television interview.
He emphasized the importance of maintaining transparency and accountability while ensuring that stricter budget controls do not unnecessarily delay government projects.
Ejercito said he intends to continue the budget reforms started by Senate President Win Gatchalian during his previous tenure as finance committee chairman.
“But we have to strike a balance na kasi naging unintended consequence noong paghigpit masyado. Bumagal naman ang spending natin. Bumagal ang infrastructure. Bumagsak ang ating GDP (gross domestic product) from 5 percent, (naging) 2 percent na lang ngayon,” he said.
The senator expressed hope that the government could accelerate infrastructure project implementation and improve the pace of public spending to help boost economic activity.
“We are already feeling the crunch. Hindi lang yung mga mahirap, mga nasa laylayan. Kahit yung mga middle class, everybody’s feeling the crunch. Our economy is dependent on public spending,” he said.
At the same time, Ejercito stressed that efforts to speed up spending must go hand in hand with greater openness in the budget process.
“But again, we need to still practice transparency. Kailangan natin i-open ang budget process. In fact, we are encouraging civil society organizations, mga watchdogs and academe to take part,” he added.
Meanwhile, the government has proposed more than ₱197 billion in the 2027 National Expenditure Program for rail infrastructure.
The proposed allocation includes ₱123.84 billion for the North-South Commuter Railway System and ₱67.44 billion for Phase 1 of the Metro Manila Subway Project.
Additional funds have also been earmarked for the LRT-1 Cavite Extension, the rehabilitation of the MRT-3, and the LRT-1 South Extension projects.