Ejercito urges balance after DPWH budget cut impact

Following the recent budget reduction in the Department of Public Works and Highways (DPWH), Senator JV Ejercito on Wednesday said there is a need to balance accountability with economic activity, noting that some contractors are hesitant to accept projects due to possible low profit.

“Okay ang ginawang reporma at pag-aayos kaya lang baka sa sobrang baba [ng material cost] tapos yung binibigay natin na contractor's profit, baka wala nang pumasok at yun yung worry natin,” he said in a radio interview with DZRH.

(“The reforms and improvements are good, but if material costs are too low and the contractor's profit is also low, contractors might not take projects, and that is our concern.”)

Ejercito said construction must be considered an economic driver. “Kailangan balansehin. [M]arami ang takot at marami rin ang nagtigil ng trabaho. Ang dami talagang negosyo ang nakakabit kapag konstruksyon,” he added.

(“It must be balanced. Many are afraid and many have stopped working. So many businesses are connected to construction.”)

He also cited assurances from Secretary Vince Dizon that even with a 25 percent reduction in certain allocations, projects may still generate income.

The Senate approved on Wednesday the proposed P568 billion DPWH budget for next year, with debates extending until 2 a.m.