President Ferdinand R. Marcos Jr.’s recent directive to realign funds originally intended for flood control projects in 2026 will not compromise the country’s overall infrastructure spending, Budget Secretary Amenah Pangandaman said Monday.

In a statement, Pangandaman said the realignment of PHP255.55 billion in flood control funding is a strategic move to prioritize vital government programs while ensuring critical infrastructure projects remain unaffected.

She said the Marcos administration remains committed to delivering key infrastructure.

“What’s important is that we still get to implement key projects like school buildings, hospitals, and infrastructure that supports our agriculture sector,” Pangandaman said.

The Department of Public Works and Highways (DPWH) has already trimmed its proposed 2026 budget from over PHP881 billion to PHP625.78 billion by removing duplicate or completed projects valued at PHP255.53 billion.

Pangandaman assured that existing contractual obligations will be honored.

No duplication

She also stressed the administration’s use of Program Convergence Budgeting, a method designed to reduce program overlaps and optimize resource allocation across agencies, ensuring funds are tied to outcomes and minimizing duplication.

Pangandaman also vowed to maintain transparency and accountability in monitoring the use of reallocated funds to guarantee they reach education and other priority sectors.

“We anticipate that Congress will work in tandem with the DBM to fulfill our shared commitment to education,” she said.

“This is not an issue of politics, but of providing real opportunity for our students, uplifting our institutions, and securing a brighter future for the country.”

Education funding

Marcos earlier ordered reallocating a portion of the DPWH’s flood control budget to support priority agencies such as the Department of Education (DepEd), the Commission on Higher Education (CHED), and the Technical Education and Skills Development Authority (TESDA).

The reallocation of funds is intended to enhance the government’s capacity to deliver quality education and skills development programs, Pangandaman said, adding it is a critical step to address growing enrollment demands and elevate the standard of higher education.

Pangandaman vowed close coordination with Congress to ensure the swift approval of increased allocations, particularly for state universities and colleges (SUCs).

“Education has always been our number one priority under the NEP (National Expenditure Program),” she said. “We stand with this realignment, and we will make sure it is implemented properly so that our students, teachers, and SUCs receive the support they deserve.”

Close coordination

Pangandaman expressed openness to adjusting funding levels, pledging to work closely with legislative counterparts to ensure allocations align with actual enrollment projections.

This, after Senator Bam Aquino cited projections from the Philippine Association of State Colleges and Universities showing that SUC enrollment, currently at 1.97 million students, could increase by 300,000 in 2026, bringing total enrollment to 2.27 million.

Aquino warned that if budget allocations do not keep pace with enrollment growth, the Department of Budget and Management’s current funding package could fall short by PHP3.29 billion.

“We must ensure alignment between projections per SUC and the corresponding Free Higher Education funding – so that no institution is left behind or underfunded,” she said. (PNA)