DBM: DPWH budget cut a ‘small drag’ on 2026 GDP

The reduction in spending for infrastructure projects is expected to have only a minimal effect on the country’s gross domestic product (GDP) next year, according to the Department of Budget and Management (DBM).

- MARCO LUIS BEECH

With reduced funding for the Department of Public Works and Highways (DPWH), Budget Secretary Amenah Pangandaman said the amount cut after the budget revision would be reallocated to education and other priority social programs to support government initiatives.

“Not that big; our infrastructure budget is more than a trillion, right? So if we just reduce the DPWH budget, we still have other infrastructure projects that are moving forward,” the DBM chief told reporters.

Based on the Budget of Expenditures and Sources of Financing for fiscal year 2026, infrastructure allocation disbursements for next year will be at P1.56 trillion or equivalent to 5.1 percent of the country’s GDP.