Department of Public Works and Highways Secretary Vince Dizon announced that the agency will scrap the so-called 'parametric formula' used for district budget allocations amid corruption allegations. The reform aims to base projects on actual needs rather than political influence. He expressed confidence that President Marcos will approve the changes.
At a press conference in Manila on January 12, 2026, Department of Public Works and Highways Secretary Vince Dizon pledged to eliminate the 'allocables' and the parametric formula developed by the late undersecretary Maria Catalina Cabral for determining district budgets. 'The allocables will be gone. That allocable system — whatever it is, which to this day I still have a hard time understanding — is gone. We will do away with all of that. There will be no more favoritism and no more slipping projects in,' Dizon said, mixing English and Filipino.
The new approach will prioritize the needs of districts, provinces, municipalities, and regions, requiring all projects to have concrete plans and endorsements from development councils. 'All projects must have a plan. All projects must be endorsed by the development councils,' he added. Undersecretary Nicasio Conti will implement the new formula in the coming weeks to ensure budgets fund only essential items, not for officials' personal gains.
This reform addresses the flood control corruption scandal, where the formula allegedly favored districts of politicians like Rep. Sandro Marcos and Rep. Martin Romualdez, per a document released by Rep. Leandro Leviste. The Office of the Ombudsman is verifying the files. Dizon is 'quite certain' President Bongbong Marcos will approve it, preventing congressional overrides.
The changes align with DPWH's 2026 priorities, including Maharlika Highway rehabilitation and completing unfinished bridges, despite a budget slash from P881 billion to P530 billion.
