Manila: The House of Representatives is considering an increase in the proposed PHP643.95-billion budget for the Department of Public Works and Highways (DPWH) to foster economic growth, generate jobs, and support the government's development objectives starting in 2027.
According to Philippines News Agency, during a press briefing, House Committee on Public Works and Highways chairperson and Appropriations vice chair Rep. Romeo Momo Sr. expressed concern over the nation's sluggish economic growth of 2.3 percent in the second quarter and its effects on employment and household income. Momo emphasized that increased infrastructure investment could act as an economic stimulus and drive growth. However, he cautioned that simply increasing appropriations would not suffice, and stressed the need for the government to expedite the release and implementation of already allocated funds for infrastructure.
Momo agreed with Asian Development Bank President Masato Kanda's view on the necessity of stronger project execution to boost economic growth. He explained that infrastructure spending in emerging economies like the Philippines should ideally represent 5 to 6 percent of the gross domestic product (GDP). With a projected GDP of PHP33 trillion in 2027, Momo calculated that 5 percent would equal around PHP1.65 trillion, highlighting a shortfall of PHP1 trillion in comparison to the proposed DPWH budget.
Momo advocated for additional infrastructure investment to focus on projects with significant economic multiplier effects, such as farm-to-market roads, national highways, bridges, and connectivity projects that enhance municipal and goods movement. Essential public facilities like day-care centers, health centers, and evacuation centers were also mentioned as priorities. Momo warned that delayed project implementation and insufficient infrastructure funding could negatively impact employment and the broader economy.
He assured that funds for the DPWH would not come at the expense of education, health, and social services. Momo stated that instead of reallocating from these sectors, the House would explore infrastructure-implementing agencies with historically low absorptive capacity for potential funding sources.
House Committee on Appropriations vice chair Rep. Reynante Arrogancia noted that lawmakers will examine infrastructure fund utilization across several agencies to determine if funds unable to be immediately implemented could be redirected to ready projects. Agencies such as the Department of Transportation, Department of Agriculture, National Irrigation Administration, Department of Information and Communications Technology, and Metropolitan Manila Development Authority were identified for potential fund utilization reviews.
Arrogancia emphasized that any realignment should not compromise the agencies' overall programs and priority projects from which funds may be sourced. He mentioned that the review process is ongoing, with no specific agency identified yet for potential fund realignment.
The infrastructure briefing was part of a series aimed at keeping the public informed about congressional deliberations on the proposed 2027 national budget, as directed by Speaker Faustino Dy III. Arrogancia and Momo were joined by House Appropriations vice chair Zamboanga del Norte Rep. Irene Labadlabad in the infrastructure cluster briefing.
