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Manila Bulletin devider Philippines devider National devider Recto: Corruption in flood control projects stunted PH's economic growth

Recto: Corruption in flood control projects stunted PH's economic growth

Published Oct 14, 2025 12:37 pm  |  Updated Oct 14, 2025 01:32 pm

At A Glance

  • Department of Finance (DOF) Secretary Ralph Recto on Tuesday, Oct. 14, said corruption in government infrastructure programs, particularly flood control projects, has hampered the country's economic growth and affected the government's ability to meet its revenue targets.
Department of Finance (DOF) Secretary Ralph Recto on Tuesday, Oct. 14, said corruption in government infrastructure programs, particularly flood control projects, has hampered the country’s economic growth and affected the government’s ability to meet its revenue targets.
Finance Sec. Ralph Recto presents the proposed 2026 budget of the Department of Finance (DOF) and its attached agencies and corporations before the Finance Subcommitte A on Tuesday, October 14, 2025. Recto, a former senator, said the DOF funds the nation’s progress to bring the Philippines closer to Ambisyon 2040, a 25-year long-term vision aimed at creating a prosperous middle-class society where poverty is eradicated. (Senate Public Relations and Information Bureau)
Finance Sec. Ralph Recto presents the proposed 2026 budget of the Department of Finance (DOF) and its attached agencies and corporations before the Finance Subcommitte A on Tuesday, October 14, 2025. Recto, a former senator, said the DOF funds the nation’s progress to bring the Philippines closer to Ambisyon 2040, a 25-year long-term vision aimed at creating a prosperous middle-class society where poverty is eradicated. (Senate Public Relations and Information Bureau)
During the Senate hearing on the Department of Finance’s (DOF) proposed 2026 budget, Senator Sherwin Gatchalian asked why the government continues to fall short of its revenue collection goals despite an improving trend in non-tax revenues over the past three years.
“But we saw a good trend in non-tax revenues in the last three years. I believe these include dividends and assets. My question is, what are the challenges faced by the government? Why does it continue to miss its revenue targets, and what innovations have been implemented to improve non-tax revenues?” Gatchalian asked.
Recto explained that missed GDP growth targets directly impact tax revenues, adding that global economic slowdowns also contribute to weaker collection performance.
However, he stressed that domestic corruption remains a major factor dragging growth.
“Nakikita natin na because of corruption issue na nangyari at nakita natin in the last few years, dahil nga dito sa flood control program — nagtataka ako, sa laki ng ginagastos ng ating pamahalaan ay dapat mas malaki ang growth ng ating ekonomiya,” Recto said.
"In spite of having this level of expenditure, dahil napunta ang parte ng capital outlay doon sa ghost projects or substandard projects — halimbawa sa flood control — ay apektado ang growth natin," he added.
Recto noted that if funds had not been lost to corruption, the Philippine economy would probably have been growing by 6 to 6.2 percent, and the collections of the BIR and BOC would have been higher.
Gatchalian earlier pointed out that while the government exceeded its revenue targets three times since 2015, it failed to do so in most years, urging the DOF to address the challenges affecting consistent revenue performance.
Recto was there to present the proposed P6.79 trillion 2026 budget of the Department of Finance (DOF) and its attached agencies and corporations before the finance subcommittee hearing presided over by Gatchalian.
Recto, a former senator, said the DOF funds the nation’s progress to bring the Philippines closer to Ambisyon 2040, a 25-year long-term vision aimed at creating a prosperous middle-class society where poverty is eradicated.

Related Tags

Department of Finance (DOF) flood control project Sherwin Gatchalian GDP ralph recto
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