As much as P348 billion may be slashed from the proposed budget of the Department of Public Works and Highways for 2026, Senator Sherwin Gatchalian said.
Gatchalian said while the DPWH already reduced its initial proposed budget of P881.31 billion to P625.75 billion, it can still be cut further after the Senate Committee on Finance that he chairs found that over 6,000 projects worth more than P271 billion suffered from “red flags.”
“The amount that can be potentially removed is P348 billion. Those with red flags are already worth P271 billion. Then the overpricing at 20% across-the-board on roads – that’s another at least P70 billion. So more or less about P340 billion,” Gatchalian said.
The senator said the projects that had “red flags” include those that have multiple phases, those identified as being duplicate projects, and those that reappeared from the 2025 General Appropriations Act to the 2026 National Expenditure Program.
Of these, 4,566 road projects lacked station numbers, making it difficult to pinpoint their exact locations or verify their physical implementation, Gatchalian said.
He also cited engineering reviews indicating that certain projects for 2026 showed signs of possible overpricing by as much as 1,400 percent.
“That is our estimate for now. So if their budget now is at P600 billion plus, we remove the P340 billion plus. So they will have around P350 billion left,” Gatchalian said.
Public Works Secretary Vince Dizon said he supports the Senate push to remove projects with potential “red flags.”
“We try our best to remove duplicate projects. If you still see any of them, by all means, we will remove those projects. We will fully support them,” Dizon said.
“It’s okay for me to reduce the DPWH budget just so we can ensure that no one steals,” he added.
Dizon said the DPWH is updating its Cost per Meter Database (CPMD) and Detailed Unit Price Analysis (DUPA) — unchanged since 2015 — to align project costs with current market prices and prevent overpricing.
Senator Loren Legarda earlier proposed an “across-the-board” 25 to 30 percent reduction in DPWH infrastructure line items, warning that Congress cannot approve a budget padded with excessive prices.
Senator Bam Aquino supported the move, suggesting an initial 20-percent cut pending the completion of the DPWH’s review.
“In conscience, we cannot sign off on a budget if we know the design and cost of materials are overpriced. Let’s go for the real price of these projects — that’s what the people deserve,” Aquino said.
