Malacañang is anticipating increased government spending in the second half of the year, particularly on infrastructure projects, as part of efforts to sustain economic momentum and support growth, Palace Press Officer Usec. Claire Castro said Thursday.
Castro made the statement following the Development Budget Coordination Committee’s (DBCC) decision to lower the country’s 2026 growth target to 3.5 percent to 4.5 percent, down from the earlier projection of five percent to six percent.
She said improvements in infrastructure spending are already being observed and are expected to translate into stronger economic performance in the latter half of the year.
“Since gumaganda na po ang paggastos sa imprastraktura, nakikita po natin na sa second half ay magkakaroon ng kaunting improvement,” Castro said.
The Palace official also pointed to external pressures affecting economic performance, including global uncertainties and the continued impact of elevated oil prices linked to tensions in the Middle East.
According to Castro, the administration’s economic team acknowledged that these external developments have weighed on domestic growth, alongside internal factors affecting government spending efficiency.
She also cited earlier caution in public spending, particularly in infrastructure, following concerns over flood control-related issues that prompted stricter evaluation and delayed fund releases in previous periods.
“Hindi agad gumastos ang gobyerno, pinag-aralan muna nang mabuti bago inilabas ang pondo. Isa ito sa mga dahilan kung bakit humina ang growth,” she said.
Castro added that under Budget Secretary Kim de Leon, the government is now balancing prudence in fund management with the need to accelerate infrastructure implementation, especially for projects critical to economic recovery.
In a separate statement, De Leon said the government has taken into account both external risks and governance challenges in revising its growth assumptions.
He said these considerations have led to a recalibration of priorities, including stronger focus on project preparation, improved execution, and more coordinated infrastructure planning.
“Looking ahead, the government intends to pursue strategic, high-quality public investments supported by stronger project preparation and improved budget execution,” De Leon said.
The Marcos administration has also begun reviewing agency-level spending performance for the first half of the year to identify projects that can be accelerated or adjusted, while simultaneously finalizing priority funding directions for the 2027 budget cycle.