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DBM backs bigger LGU role in infra projects

by August 28, 2025
August 28, 2025

THE Department of Budget and Management (DBM) said it will support a provision in the proposed 2026 General Appropriations Act (GAA) that gives local government units (LGUs) an expanded role in shaping infrastructure pro-jects.

Budget Secretary Amenah F. Pangandaman said she plans to propose this provision to the 20th Congress after LGUs claimed they were not consulted on a number of faulty or “ghost” projects within their jurisdic-tions.

“Maybe I’ll write to the Senate and the House about closer coordination with local government units for the projects,” Ms. Pangandaman told reporters on the sidelines of a DBM event on Wednesday. “Maybe I can propose a general provision in the GAA.”

Legislators are currently investigating alleged corruption in flood control and other infrastructure projects.

Last week, President Ferdinand R. Marcos, Jr. ordered a freeze on P60 billion to P80 billion worth of infrastructure funds in the 2025 national budget after he personally inspected a river wall in Baliwag City, Bulacan which was falsely reported as completed but turned out to be non-existent.

Party-list Rep. Terry L. Ridon said the 220-meter-long reinforced concrete river wall in Bulacan was funded in the 2025 National Expenditure Program, which served as the basis for the legislated budget.

Ms. Pangandaman said such ghost projects are “regrettable” considering the government’s limited fiscal space.

“We don’t have enough fiscal space, right, and then there are projects that actually are not being done,” Ms. Pangandaman said. “It’s really regrettable… Let’s hold (those responsible) accountable.”

The Department of Public Works and Highways is working with the Department of Economy, Planning and Development in auditing government infrastructure projects following a Presidential directive.

The Commission on Audit has also submitted its report, according to Ms. Pangandaman.

In separate remarks on Thursday, Ms. Pangandaman said her department is working on a provision in the GAA that would more tightly control infrastructure budget releases.

She added that her staff is preparing letters to be sent to the Senate President, the chairman of the Senate Committee on Finance, the Speaker and the chairman of the House Committee on Appropriations.

“It should be done next week,” Ms. Pangandaman said.

She said legislators will be approached to sponsor such a provision. — Katherine K. Chan

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