Finance Secretary Ralph Recto has vowed “strict scrutiny” of the proposed 2026 national budget to ensure no taxpayer’s peso is wasted, denouncing corruption in the implementation of government infrastructure projects.
Recto’s pledge, made during a Senate budget briefing on Tuesday, is in line with President Ferdinand Marcos Jr.’s directive on Monday to clean out alleged questionable insertions in the 2026 National Expenditure Program submitted by the Executive Department to Congress.
The pledge comes amid grave concern over recently uncovered anomalies, including “ghost” flood control projects in the Department of Public Works and Highways (DPWH).
P42-P118B losses
Recto revealed such projects have cost the Philippine economy an estimated P42.3 billion to P118.5 billion from 2023 to 2025—funds that he said could have created up to 266,000 jobs.
“Raising revenues is no joke. It is a great injustice to see it not go to the right projects and the welfare of the people,” Recto said in a prepared speech during the September 2 Senate budget briefing.
“We will guard this [budget] so there are no ghost projects. No corruption. Not a single peso wasted,” he said.
P6.79T budget for 2026
Recto said wise spending is key to encouraging tax compliance, as citizens need to see their money creating tangible benefits, emphasizing that the ₱6.793-trillion NEP is designed to fund infrastructure, education, health, and social welfare with the highest multiplier effect.
“For good spending is the best way to encourage tax compliance. People are naturally resistant to taxes. But their tax obedience can be won if they will see how the taxes they paid are spent on the right things, at the right price, by the right agency, at the right time,” he said.
“That is exactly why we are allocating funds to where it matters most: 5 percent to 6 percent of GDP for infrastructure spending, 4 percent of GDP to education, and roughly 4 percent of GDP to health, agriculture, and social welfare to uplift the lives of Filipinos,” Recto added.
Stricter coordination
Budget Secretary Amenah Pangandaman also made a commitment to stricter coordination with the Congress’ bicameral conference (Bicam) when it deliberates on the 2026 Budget.
Pangandaman affirmed the DBM’s readiness to cooperate and, where necessary, to recommend appropriate executive actions on questionable items, in response to a statement from Senator Panfilo Lacson to strictly monitor the Bicam.
Lacson pointed out the propensity of some lawmakers in making budget insertions at the Bicam level, which he said, skews the final outcome of the NEP after the two Chambers have passed their respective budget versions.
“There should be coordination between the Legislature and the Executive branches. Every step of the way — you [DBM] should stay alert against that, especially during the Bicam [conference committee] because we all know that that is where the biggest culprits come in, right? That’s where the bulk of realignments happens,” Lacson said In the same briefing.
In response, Pangandaman said: “We hear and respect these concerns. We will be watching the Budget more closely this time. While the DBM no longer has jurisdiction over the General Appropriations Bill, we will work very closely with the House Secretariat and the Legislative Budget Research and Monitoring Office (LBRMO) to provide real-time technical validation and to ensure that any bicam changes remain constitutional, transparent, and most importantly, for the benefit of our fellow Filipinos.”
“If there are items that violate the Constitution or are unsupported, we’ll flag them, document them, and elevate our recommendations—consistent with the President’s veto powers and our shared commitment to good governance,” she added.
Pangandaman has called for an open bicameral conference where hearings are livestreamed and amendment matrices with justifications are publicly published.
Scrutiny ‘long overdue’
Jonathan Ravelas, senior adviser at Reyes Tacandong and Co. said “strict scrutiny is long overdue.”
“Make them accountable,” Ravelas said, noting that the corruption controversy surrounding the infrastructure projects is nothing new. He was referring to the old corruption case against businesswoman Janet Napoles, who was convicted of plunder for her involvement in the Priority Development Assistance Fund Scam in xxxxx (year).
“Ghost projects bleed public funds and erode trust. If the DOF is serious, it must pair audits with digital transparency—track every peso, every project. That’s how we protect the budget and restore credibility,” Ravelas said in a message to Malaya Business Insight.
