Department of Finance (DOF) Sec. Frederick Go – Photo from Department of Finance/Facebook
The Department of Finance (DOF) stressed that exercising fiscal discipline will be critical heading into 2026 as the Philippines continues to recover from the flood control corruption scandal.
Finance Secretary Frederick Go said agencies should prioritize spending on projects with the highest economic returns.
“The key to that fiscal discipline is that all the agencies take a very good look at their budgets and focus on the expenditures with the highest efficiency, the highest productivity, and perhaps forego some of their projects or expenditures that have low efficiency or low productivity,” Go said.
The push for disciplined spending comes as the government implements catch-up and reform measures following the flood control scandal.
The scandal contributed to a 4 percent gross domestic product growth during the third quarter, the slowest pace in four years, due to curbed public spending on infrastructure.
He said he is counting on the Office of the Ombudsman’s promise of prosecution, noting that most of the scandal is now “behind us.”
Controversial contractor Sarah Discaya has already been detained on graft and malversation of public funds charges.
About P12 billion has been earmarked for restitution, including frozen bank accounts, repossessed vehicles, and other seized assets.
Reforms at the Department of Public Works and Highways (DPWH) include lowering project unit costs and holding biddings via video conferencing, with the 2026 budget allocation for the agency reduced to P529.6 billion.
The DOF chief expressed optimism that moving past the scandal, along with proper prosecution, restitution, and public works reform, is key to economic recovery, even as revenue collections are expected to remain below targets.