The Department of Budget and Management (DBM) said it is now exercising “extra caution” in releasing public funds following the recent corruption controversies surrounding the Department of Public Works and Highways’ (DPWH) flood control projects.
DBM Assistant Secretary Romeo Matthew Balanquit explained that while careful fund management is necessary, the government must also avoid halting disbursements that could dampen economic growth.
“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,” Balanquit told reporters.
He noted that the government recorded ₱157 billion in underspending during the third quarter, mainly due to delays and issues involving flood control initiatives under the DPWH.
“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 DBM’s stricter scrutiny will continue in the fourth quarter, particularly for flood control programs, while other government projects will proceed as planned. He also assured that official development assistance (ODA) and major infrastructure investments would not be affected.
“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,” he added.
Meanwhile, Finance Secretary Ralph Recto earlier warned that the Philippines could miss its full-year growth target, citing weak revenue performance and slower government spending. From January to August, infrastructure disbursements dropped by 5.6%, reaching ₱798.4 billion, compared to ₱845.3 billion during the same period last year.