Malacañang on Thursday said the government must accelerate infrastructure spending to help boost economic growth after lowering its gross domestic product (GDP) growth forecast for 2026.

Palace Press Officer Undersecretary Claire Castro said the Development Budget Coordination Committee's revised growth projection of 3.5 percent to 4.5 percent, down from the original 5 percent to 6 percent target, was influenced by both global and domestic factors.

"The Middle East crisis was also one of the factors why there's such a situation. But according to Budget Secretary Kim Robert De Leon, it's about time for the government to increase spending, particularly on infrastructure projects," Castro said.

She added that budget releases had been slowed as the government exercised caution following the controversy over alleged ghost flood control projects involving billions of pesos.

"This is one of the reasons why the country's growth has slowed," Castro said.

On Wednesday, Budget and Management Secretary Kim Robert De Leon met with Senate President Sherwin Gatchalian and Senate Committee on Finance Chair Sen. Joseph Victor "JV" Ejercito to discuss budget utilization and the implementation of priority programs under the 2026 national budget.

During the meeting, De Leon said government spending is expected to accelerate in the second half of the year as the Department of Public Works and Highways and the Department of Transportation ramp up major infrastructure projects to support economic growth, create jobs, and improve public services.

The officials also discussed possible reforms to strengthen budget execution and ensure government funds are spent efficiently, transparently, and in line with national development priorities.

Separately, Executive Secretary Ralph Recto convened senior government officials to review the implementation of the 2026 budget and finalize spending priorities for the proposed 2027 national budget.

"We need to closely track the execution of the 2026 budget and finalize the 2027 national budget. Let us get our act together and ensure that our programs and projects are delivered faster in the second half of the year," Recto said.

Recto also reviewed the progress of the government's UPLIFT interventions, stressing the need to prioritize programs that provide immediate assistance to vulnerable sectors.

The meeting was attended by Health Secretary Teodoro Herbosa, Transportation Secretary Giovanni Lopez, Education Secretary Sonny Angara, Budget Secretary De Leon, Energy Secretary Sharon Garin, Economy, Planning, and Development Secretary Arsenio Balisacan, as well as senior officials from the Departments of Social Welfare and Development and Agriculture.