Government eyes accelerated pace of public spending
MANILA, Philippines — The administration has implemented measures to accelerate the pace of government expenditures, drive economic activity and support growth, President Marcos said.
The President acknowledged that public spending had been delayed following a close review of the national budget in the wake of the multibillion-peso flood control corruption scandal.
Gross domestic product grew by just 2.3 percent in the second quarter of 2026, slower than the 2.8 percent recorded in the first quarter and the 5.4 percent growth posted in the second quarter a year ago.
“But again, in terms of public spending, we are pretty much on current in terms of our scheduling. And we will be, I am confident we will be able to catch up and exceed the year-on-year public spending by the last quarter of this year,” Marcos said during the Foreign Correspondents Association of the Philippines Presidential Luncheon in Manila on Friday.
Marcos said the close re-examination of the previous year’s budget resulted in projects and contracts being bid out only toward the end of the first quarter of 2026, delaying the implementation of public spending.
“As of the end of the second quarter of this year, we are only at a shortfall of about seven percent year-on-year in terms of public spending,” Marcos said.
“We will make up for that the rest of the year,” he added.
Marcos explained that the government could not just increase expenditures without considering the capacity of government agencies and private contractors to implement projects.
“So throwing money at the problem simply doesn’t solve it, doesn’t make anything better,” the President said.
He said the administration has also used public expenditures to provide direct assistance and subsidies to sectors affected by higher global oil prices and uncertainty arising from the conflict in the Middle East.
“We are hoping that the situation in the Strait of Hormuz improves,” Marcos said, noting that stable shipping routes would help provide more predictable conditions for petroleum supplies and economic planning.
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