Wednesday, October 1, 2025

UP economist proposes simple fix for ‘ghost’ projects

- Advertisement -spot_img

An economics professor has suggested a simple solution to prevent “ghost” infrastructure projects from getting into the government’s budget: by including each project’s unique Public Investment Program (PIP) code in the budget documents.

Maria Cielo Magno, an associate professor at the UP School of Economics, said this would make it easier to monitor and trace budget insertions.

Magno, who previously served as an undersecretary of Finance, noted that infrastructure projects slated for funding should have already undergone strict scrutiny as part of the Public Investment Program (PIP).

The PIP is managed by the Department of Economy, Planning, and Development (DEPDev), formerly the National Economic and Development Authority (NEDA).

“It will be easier for everyone to monitor the planning, budget and implementation of these flagship infrastructure projects if the unique PIP code of the projects are included in the budget document,” she said.

Magno explained that while the PIP contains the government’s flagship programs and aligns with the Philippine Development Plan, “there is no way for the public to monitor how the infra in the government plans end up in the budget.”

By incorporating the unique PIP code from the planning stage through to budgeting and auditing, Magno believes “there will be greater accountability and infra insertions will be easier to identify because they won’t be having PIP codes.” She calls this “a very easy solution that the economic team can implement.”

Magno’s comments follow recent statements from Finance Secretary Ralph Recto, who promised “strict scrutiny” of the proposed 2026 national budget.

Recto aims to prevent the recurrence of questionable insertions, such as the “ghost” flood control projects in the Department of Public Works and Highways (DPWH) that he said cost the economy between P42.3 billion and P118.5 billion from 2023 to 2025.

Budget Secretary Amenah Pangandaman has also committed to stricter coordination with Congress’s bicameral conference (BICAM) when it deliberates on the 2026 budget. This comes after Senator Panfilo Lacson highlighted the tendency of some lawmakers to make budget insertions at the BICAM level, which can distort the final budget.

Pangandaman affirmed the Department of Budget and Management’s readiness to cooperate and recommend appropriate actions on questionable items.

Author

- Advertisement -

Share post: