Manila: Finance Secretary Ralph Recto assured senators that the proposed PHP6.79-trillion national budget for 2026 would focus on projects with the 'highest multiplier effect'. Recto, speaking before the Development Budget Coordination Committee's briefing at the Senate, emphasized the National Expenditure Program's commitment to infrastructure, education, health, agriculture, and social welfare.
According to Philippines News Agency, Recto stated that the proposed budget is designed to eliminate ghost projects and corruption while ensuring every peso is well-spent. The government plans to allocate 5 to 6 percent of the gross domestic product for infrastructure projects, 4 percent for education, and approximately 4 percent for health, agriculture, and social welfare initiatives. This allocation strategy is expected to encourage tax compliance through good spending practices.
Recto highlighted that the Philippine economy continues to exceed expectations despite global challenges such as wars, trade tensions, and climate risks. He noted that the country's inflation rate slowed to 0.9 percent in July, significantly below the global average of 4.2 percent for the year. The Finance Secretary commended the average growth rate of 5.9 percent under the Marcos administration, describing it as a considerable achievement given the inherited debt, high policy rates, and global economic pressures.
The country's economic growth ranks among the fastest in Asia, Recto reported. Since 2022, the economy has created approximately 6 million jobs, resulting in a record total employment of 50.5 million, with 31.8 million in stable, formal positions. This trend reflects a growing middle class and a consumer market projected to become the 13th largest globally by 2030.
The proposed budget aligns with the Medium-Term Fiscal Program, aiming to gradually reduce the national deficit and debt while creating jobs and reducing poverty to single digits by the end of President Ferdinand R. Marcos Jr.'s term. Recto concluded by stressing the importance of ensuring the budget works effectively for the taxpayers who fund it.
