Marcos wants budget reforms after flood control scam

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January 28, 2026 | 12:00am

MANILA, Philippines — President Marcos is pushing for budget reforms to prevent a repeat of the multibillion-peso flood control scam, which enabled some officials and contractors to pocket huge kickbacks from problematic and non-existent projects.

Ensuring transparency and accountability in the use of state funds and responding to climate change and other external forces were discussed during Marcos’ meeting with the Economy and Development Council on Monday, Malacañang said.

“The President issued a directive to respond to the flood control issue, the effects of climate change and other external forces that challenge the economy of the country,” Presidential Communications Undersecretary Claire Castro said at a press briefing yesterday.

Castro said the government has launched a transparency portal that would allow the public to monitor the activities of government agencies, including procurement and biddings.

Local governments were also reminded to exercise transparency and accountability in spending their money, she added.

At the same meeting, Marcos emphasized the need for better forecasting, response and adaptation through appropriate and modern technology to address the impact of climate change.

He also stressed the importance of strengthening coordination with other countries, especially the Association of Southeast Asian Nations, to strengthen the economy.

Economic managers reported to Marcos that the economy remains strong and that gains have been made in addressing joblessness and poverty. 
They noted that the unemployment rate dropped to 4.7 percent in 2025 from 10.3 percent in 2020, while the underemployment rate decreased to 13.6 percent last year from 16.2 percent in 2020.

According to economic managers, the number of poor Filipinos went down by 2.4 million from 2021 to 2023. Poverty incidence was at 17.5 million in 2023 – lower than the 19.9 million recorded in 2021, they added.

Faster response

In a related development, Executive Secretary Ralph Recto met with the budget department, the Office of Civil Defense and the Department of the Interior and Local Government last Monday to speed up response for disaster-hit communities.

A statement released by Recto’s office said he had emphasized Marcos’ order to ensure that assistance must reach affected families swiftly.

Recto also highlighted the need to simplify the process for vetting local governments’ requests to eliminate bottlenecks and speed up the release of support.