MANILA – Lawmakers in the bicameral conference committee have approved a sharply reduced P529.6-billion budget for the Department of Public Works and Highways (DPWH) in 2026 after recalibrating construction costs to more realistic market prices, a move that generated P20.7 billion in savings later reallocated to health insurance and disaster response.
The agreement was reached early Thursday at the close of four days of bicameral deliberations on the proposed P6.793-trillion 2026 national budget, with legislators adopting updated Construction Materials Price Data (CMPD) submitted by DPWH that covered around 10,000 infrastructure projects nationwide.
Senate Finance Committee chair Sherwin Gatchalian said the revisions corrected inflated estimates by factoring in logistics, hauling, and other cost components that had previously pushed prices upward.
“Base doon sa submission ng DPWH, sa bagong submission nila, na dito sa bagong adjustment factor, pinasok na nila ang logistics, pinasok na nila ang hauling cost at iba pang maging cost, so naging mas near actual, hindi pa actual, but near actual na ang cost nila,” Gatchalian said.
He said the recalibration gave Congress confidence to remove padded expenses from the spending plan.
“Ang resulta ng savings na nakuha natin ay P20.7 billion. So confident akong sabihin na wala nang overpriced na materyales sa loob nitong budget na ito,” he added.
Of the total savings, P16.52 billion was realigned to the Philippine Health Insurance Corporation (PhilHealth), while P4.25 billion was channeled to the National Disaster Risk Reduction and Management Fund.
DPWH earlier sought the restoration of funds cut after CMPD-based adjustments were applied, but House Committee on Appropriations chairperson and Nueva Ecija Rep. Mikaela Angela Suansing stressed that the bicameral panel acted transparently and in coordination with concerned agencies.
“Wala po kaming kina-cut na hindi namin pinapaalam sa mga ahensya. I think that’s usually the main point of contention. We also don’t put in items in the budget of the respective agencies without the approval of the head of agency,” Suansing said.
The final DPWH allocation represents a steep reduction—more than P300 billion lower than the original National Expenditure Program and P94 billion less than the House-approved General Appropriations Bill. The Senate had earlier approved a P570.48-billion DPWH budget on third reading.
The agency had initially proposed P881.31 billion for 2026, but the amount was cut significantly following the removal of locally funded flood control projects amid concerns over substandard work and alleged ghost projects.
Despite the deep cuts, Gatchalian said DPWH leadership accepted the final figure, noting that discussions between Congress and the Executive branch continued throughout the budget process.
“In fact, may mga letters sila. Nagpapadala rin sila ng mga data para mapagaralan namin,” he said.
The consolidated 2026 national budget, including the revised DPWH allocation, is now awaiting final approval./PN
