Manila: The government will save up to PHP25.6 billion for the whole year following the implementation of a 20-percent reduction in non-essential government spending, the Department of Budget and Management (DBM) stated on Thursday. This initiative is a part of the government's strategy to create additional fiscal space aimed at mitigating the impact of escalating geopolitical tensions in the Middle East, which have been affecting global energy supply and prices.
According to Philippines News Agency, the DBM is enforcing strict efficiency measures across national government agencies by cutting down on non-essential Maintenance and Other Operating Expenses (MOOE). These measures involve limiting official travel to essential activities, maximizing virtual engagements, enhancing energy conservation efforts, and streamlining operational expenditures. These actions are projected to generate savings ranging from PHP12.8 billion to PHP25.6 billion from March to December 2026, depending on the level of compliance across agencies.
DBM Acting Secretary Rolando Toledo emphasized that essential and frontline services such as education, health, and social protection are exempt from the mandatory 20 percent spending cut. Toledo underscored the government's commitment to ensuring that limited resources are focused on those most in need without jeopardizing fiscal stability. "The instruction of President Ferdinand R. Marcos, Jr. is to protect the Filipino people first. Even as we tighten spending, we will ensure that critical services remain uninterrupted and that assistance reaches those who need it most," he stated.
To address the impact of the Middle East crisis on affected and vulnerable sectors, the government has allocated PHP238 billion. This funding, sourced from the 2026 General Appropriations Act, continuing appropriations, and automatic appropriations, will support key interventions, including fuel subsidies for the transport sector, assistance to farmers and fisherfolk, healthcare support, and other targeted social protection programs. Initial measures already in progress include PHP2.5 billion in fuel subsidies for transport operators and an additional PHP1 billion for service contracting.
