Philippine government spending may slow amid ongoing probes into alleged corruption in flood-control projects, according to Budget Secretary Amenah Pangandaman.
Investigations being carried out by lawmakers and an independent body created by President Ferdinand Marcos Jr. as well as the decision by the new public works chief to briefly pause bidding for infrastructure projects could temper spending, she said.
Ms. Pangandaman made the comments on Wednesday on the sidelines of a forum arranged by international organization Innotech.
The scrutiny could also send a chilling effect on how other agencies utilize their budget, she added.
Allegations of widespread corruption in flood-mitigation projects in the Southeast Asian nation have triggered mass demonstrations and implicated some lawmakers who have denied any wrongdoing.
But Ms. Pangandaman said any slowdown in state spending is unlikely to be significant enough to affect output in the next quarters. Government spending has historically accounted for less than a fifth of the nation鈥檚 economic output.
She also expects Congress to pass the proposed 2026 national budget of P6.793 trillion ($118 billion) on time. — Bloomberg
