Phl infra spending declines for 5th straight month in Nov

Philippine government spending on infrastructure fell for a fifth straight month in November, underscoring how a widening corruption investigation has weighed on public works implementation and fiscal momentum.

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State disbursements for infrastructure and other capital outlays plunged 45.2% to P48 billion from a year earlier, according to data released by the Department of Budget and Management (DBM) on Jan. 31. Spending also declined 27.2% from October.

November marked the fifth straight annual contraction since July, when infrastructure spending dropped 25.3% after allegations of corruption linked to flood control projects surfaced. The scandal has since triggered investigations, leadership changes and tighter scrutiny of project approvals, slowing the pace of government outlays.

“The spending performance of the DPWH (Department of Public Works and Highways) continued to post negative growth amid the ongoing probe and crackdown on corruption issues,” the DBM said.

The fiscal slowdown curtailed project execution and prompted contractors to submit progress billings and payment claims immediately, the agency said, as authorities sought to strengthen controls and oversight.

The DPWH, which has been at the center of the controversy, has undergone a budget overhaul, the dismissal of several officials and a continuing investigation that weakened sentiment and slowed activity across the construction sector.

The fallout has also spilled over to the broader economy, weighing on household spending and private investment.

From January to November, total government infrastructure spending fell 16% to P991.1 billion from a year earlier. This accounted for 65.51% of the government’s P1.51-trillion full-year infrastructure program.