Revised computations for around 10,000 Department of Public Works and Highways projects affected by earlier fund cuts have generated P20.7 billion in savings under the proposed 2026 national budget.
Senate Finance Committee Chair Sherwin Gatchalian announced the figure early Thursday during the bicameral conference committee meeting on the disagreeing provisions of the budget at the Philippine International Convention Center.
Gatchalian said the Senate team completed new calculations based on updated Construction Materials Price Data provided by DPWH Secretary Vince Dizon after questions were raised over earlier cost adjustments.
“So after two days po na in-apply to all 10,000 projects, ang savings na nakuha ho natin is P20.7 billion,” Gatchalian said, referring to reductions attributed to lower and more near-actual material costs.
He added that the recalculation factored in logistics, hauling, and other costs, resulting in revised project prices that are closer to actual estimates.
“So confident po ako sabihin na wala nang overpriced na materyales sa loob po nitong budget na ito,” Gatchalian said.
Of the total savings, P16.5 billion will be allocated to the Philippine Health Insurance Corporation to cover what the Senate described as a shortfall in government remittances mandated under the Sin Tax Law.
“Dapat po ang remittance ng PhilHealth for 2026 is P69.7 billion… may P16.5 billion na kulang,” Gatchalian said.
The remaining P4.2 billion will be placed under the National Disaster Risk Reduction and Management Fund to support disaster preparedness and response.
The recalculation followed prolonged bicameral discussions after Dizon said earlier Senate cuts applied adjustment factors to entire project costs rather than to materials alone, prompting delays and a review before the DPWH budget was finalized.
