Manila: Senate Committee on Finance chairperson Senator Sherwin Gatchalian said Thursday the 2026 national budget could be reduced if investigations confirm overpricing in the Department of Public Works and Highways' (DPWH) proposed PHP800 billion allocation.

According to Philippines News Agency, Gatchalian stated during the Kapihan sa Senado that the Senate is meticulously examining the DPWH budget and may implement a broad reduction to help decrease the country's budget deficit and debt levels. Gatchalian suggested that if overpricing is confirmed, a reduction of 10 to 20 percent could be applied to the DPWH budget, subject to Senate approval. This would mean a potential cut of PHP80 billion from the PHP800 billion proposal if a 10 percent overpricing is identified.

Gatchalian explained that reducing the DPWH allocation would automatically decrease the total proposed 2026 budget, rather than reallocating the savings to other agencies. The savings from a reduction in the DPWH budget, if overpricing is confirmed, could lead to a smaller 2026 budget, thereby reducing debt and the fiscal deficit.

He emphasized that while Congress cannot increase allocations in the National Expenditure Program submitted by the executive branch, it is allowed to reduce or realign funds to promote fiscal discipline and prevent the wastage of public funds.

The Senate finance panel's review follows the Independent Commission for Infrastructure's identification of possible overpricing in several DPWH projects, prompting closer scrutiny of the agency's spending under the 2026 budget proposal.