Infrastructure spending plummeted in November last year as the Marcos administration curtailed funding releases for public works projects amid an intensifying crackdown on corruption in flood-control programs.

According to the latest disbursement report from the Department of Budget and Management (DBM), government outlays for infrastructure and capital projects sank 45.2 percent to ₱48 billion in November from ₱87.6 billion a year earlier.

The contraction marked a deepening trend of fiscal restraint as the Department of Public Works and Highways (DPWH) faces heightened scrutiny over allegations of graft.

The budget department attributed the decline to deliberate slowdown in project implementation and backlog in payment processing.

Contractors have reportedly delayed the submission of progress billings as the government audit intensifies, leading to a bottleneck in the disbursement of earmarked funds. This paralysis in the public works sector was the primary drag on total government spending, which fell 9.6 percent to ₱498.3 billion in the month.

Beyond the corruption inquiry, the DBM noted that overall expenditures were further constrained by reduced capital transfers to local government units, lower maintenance expenses, and lower subsidies to state-run corporations.

For the first 11 months of 2025, total infrastructure spending reached ₱991 billion, a 16 percent drop from the ₱1.18 trillion recorded in the same period in 2024.

The persistent weakness in DPWH spending comes despite the administration’s stated goals of modernizing national logistics. While the DBM expects ₱74.3 billion in allotments released in December to provide a year-end cushion, preliminary data suggest the recovery may be uneven.

The DPWH received no new allotments in December, while the Department of National Defense led allocations with ₱17.5 billion dedicated to the Armed Forces of the Philippines modernization program. The Department of Education followed with ₱13 billion, largely to cover performance-based bonuses for school personnel.

Looking toward the next fiscal cycle, Finance Secretary Frederick Go said the government has finalized its 2026 fund allocations.

Despite the current friction in disbursements, the DPWH remains among the top five priority agencies for funding, alongside the departments of education, health, agriculture, and transportation.

The administration is betting that more stringent oversight will eventually clear the way for more efficient spending, though the immediate result remains a significant cooling in state-led construction activity.