An economist dichotomized to Nosy Tarsee the estimated P1.089 trillion in pilfered funds from climate-tagged expenditures potentially lost to corruption since 2023, primarily in flood control and related infrastructure projects under the Department of Public Works and Highways (DPWH).
The computation was based on equations derived from the Senate inquiry, including the claim by one of the DPWH engineers that only 30 to 40 percent of project budgets went to the actual implementation, with the rest siphoned off through kickbacks, ghost projects, and substandard work.
For 2025 alone, this included up to P560 billion from DPWH’s P800 billion climate budget, with flood-specific projects accounting for P248 billion (of which P173 billion was estimated to be vulnerable).
Other estimates suggested annual losses of P42.3 to P118.5 billion from flood control corruption, which over three years aligns with the lower end figures.
These funds were allocated from the national budget, exacerbating the fiscal strain amid persistent deficits and rising debt.
The country’s gross domestic product (GDP) in 2025 was estimated at P28.50 trillion, with growth slowing to 4.4 percent, below the government’s 5.5 to 6.5 percent target, as the corruption scandal eroded investor confidence and wiped out P1.7 trillion in the stock values of companies.
The national debt reached P17.71 trillion by the end of last year, with the fiscal deficit at 5.6 to 5.7 percent of GDP fueling borrowing.
Corruption in public projects not only represents lost public funds but also amplifies economic vulnerabilities, as ineffective flood control leaves the country exposed to annual weather-related losses equivalent to three percent of GDP, or about P850 billion based on the current GDP.
If the P1 trillion had been deployed efficiently for flood control, it could have generated both short-term stimulus and long-term resilience benefits.
The funds, spread over three years (about P333 billion annually), would support construction jobs, supply chains, and related services. Assuming a conservative fiscal multiplier of 0.5, accounting for debt constraints, the economic expert said the amount could have added P500 billion to cumulative GDP over the period, equivalent to about a 0.6-percent annual growth boost on average.
The long-term impact, however, would be saving Filipino lives through reduced flood damage.
Efficient flood control investments yield high returns by averting economic losses. The Philippines faces annual flood-related damages of P100 to P200 billion, including destroyed infrastructure, lost productivity, and recovery costs.
The proper use of P1 trillion could fund dikes, drainage systems, and resilient infrastructure, potentially reducing annual flood losses by 20 to 50 percent. This translates to annual savings of P20 to P100 billion, compounding to P600 billion over the period.
Instead, the more than P1 trillion that came from the sweat and blood of Filipinos went straight to the pockets of government crooks who are fueled by pure greed in raiding the national coffers yearly.