Government infrastructure spending plunged by 35.3 percent in May, extending its decline, as stricter vetting of payment claims and paperwork for contractors stalled disbursements, Philstar Biz reported. The slowdown was particularly pronounced at the Department of Public Works and Highways (DPWH), nearly a year after the flood-control corruption scandal erupted.
The drop in spending signals ongoing challenges in the government's infrastructure program, which had been a key driver of economic growth. Analysts noted that enhanced scrutiny of contractor payments, aimed at preventing irregularities, has inadvertently slowed project implementation and fund releases.
The DPWH has been under pressure to reform its procurement and payment processes following the scandal, but the stringent measures appear to have created bottlenecks. The sustained decline in spending could affect the pace of public infrastructure development in the coming months, the report said.