Senator Win Gatchalian asked the labor department for an urgent employment risk assessment on employment, citing potential economic fallout from a drastic reduction in the government’s infrastructure spending amid the flood control fiasco.

Senate Finance Chair Gatchalian warned that the sharp cut in the DPWH’s proposed budget would significantly slow infrastructure investments. This spending is crucial, as government spending accounts for about 15% of the country’s annual economic growth, he said.

While the Finance Committee is determined to ensure the integrity of the government’s 2026 budget and avoid a repeat of the highly anomalous budget for this year, Gatchalian said he remains cautious, as any substantial reduction in infrastructure spending could hurt employment, domestic consumption and the overall economy.

“We don’t want a repeat of the 2025 budget, and we want to be careful with budget cuts. With this cut, do you see any risk?” Gatchalian asked DOLE.

According to him, the department’s employment risk analysis should also consider external headwinds such as the imposition by the United States of a 19% tariff on Philippine goods and regional tensions in certain parts of the globe, among others. 

Photo by Mark Cayabyab / OS WIN GATCHALIAN