Marcoleta hits DPWH for allegedly reducing project budget ceilings

Senator Rodante Marcoleta on Monday hit the Department of Public Works and Highways (DPWH) for allegedly decreasing the approved budget ceiling (ABCs) for infrastructure programs including foreign-assisted projects (FAPs) under the proposed national budget. 

Marcoleta, Senate Blue Ribbon Committee chairperson, read a portion of a June 2023 letter of the Department of Budget and Management (DBM) to the DPWH, reminding the agency of “strict adherence” to the approved ABCs under the national expenditure program (NEP). 

DBM Secretary Amenah Pangandaman confirmed the letter.

“Kaya po ninyo sinulat kasi may pangyayari tulad ng fiscal year 2023, ‘yung approved ceiling galing sa inyo ay P75.7 billion. Ang ginawa ng DPWH, ‘yung P75.7 billion, ginawang P70.7 billion. Ibig sabihin, binawasan ng P5 billion,” said Marcoleta.

(You wrote this because in 2023, the ceiling approved by the DBM was P75.7 billion. The DPWH lowered the ABC from P75.7 billion to P70.7 billion. It was reduced by P5 billion.)

According to the lawmaker, the DPWH repeated the process in 2024 when it decreased the ABC under the NEP from P97.7 billion to P70.7 billion. It further went down to zero under the General Appropriations Act (GAA). 

“Kinukuha niyo sa flagship project ng President, dinadala niyo sa pork barrel…Kaya natin iniisa-isa ito dahil dito nanggagaling ang mga kurakutan,” Marcoleta added. 

(The DPWH is removing the budget for the President’s flagship projects and is allocating it to pork barrel programs. We are investigating it one-by-one because these are the sources for corruption.)

The DBM said it is consistently reminding all government agencies and departments on their approved budgets. 

Foreign-assisted projects

Meanwhile, Marcoleta asked Pangandaman on the possible impact of the lowered ABCs to FAPs of the government. 

The DBM chief said decreased budget ceilings and insufficient fundings may result to the delays in the implementation of the project, which will incur higher government costs due to commitment charges. 

“Nagkakaroon ng delay sa implementation ng projects…’Yung commitment charges na binabayaran natin at minsan pag nag-extend, nagmamahal ang mga proyekto kasi as we go further, minsan nagmamahal ang mga ginagamit nila para sa projects nila,” Pangandaman added. 

(When we have insufficient funding, it result to delayed project implementation. That makes the project more costly due to the commitment charges that we pay and higher prices of resources.) — BM, GMA Integrated News