Manila: Malaca±ang announced Thursday that the government will adopt a more careful approach in utilizing public funds, focusing on projects that yield significant economic and social benefits, as the Philippine peso continues to depreciate against the US dollar.
According to Philippines News Agency, the peso closed at PHP62.565 against the dollar on Wednesday, marking its fourth consecutive record-low close. The decline of the peso increases the cost of imported goods, such as fuel and other dollar-priced products, impacting Filipino consumers.
Palace Press Officer Claire Castro stated that fiscal discipline is part of the administration's strategy to tackle the economic challenges the country faces. Reading from a statement by the Office of the Executive Secretary (OES), Castro explained that the peso's recent decline is due to the strengthening of the US dollar and rising global oil prices.
The OES also noted that the recent interest rate hike by the Bangko Sentral ng Pilipinas (BSP), although intended to maintain stable inflation expectations, could also support the peso. 'Moving forward, we expect the BSP to act decisively based on available data and intervene when necessary to reduce exchange rate volatility,' the OES mentioned.
Castro emphasized that to strengthen the economy, it is essential to ensure that public funds are allocated to the right priorities. 'One of the solutions seen by the administration is for the government to spend on the right projects. Our funds should not be wasted on unnecessary expenditures,' she remarked. 'There should be discipline in how funds are spent to help improve the country's economy,' she added.
When questioned about whether Malaca±ang would instruct agencies to cut non-essential spending, Castro said the issue would be examined by the economic team first. She highlighted that government savings could be redirected to more critical needs.
She also identified the ongoing conflict in the Middle East as another economic pressure point, particularly because the Philippines sources part of its crude oil supply from the region.
Castro noted that the government continues to implement measures under the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) to mitigate the impact of rising prices on Filipinos. These measures include PHP20 per kg rice for eligible beneficiaries, zero-balance billing in Department of Health hospitals and select local government hospitals, and toll-free access for buses and vehicles transporting agricultural products.
The expanded UPLIFT assistance program was introduced to aid low-income households in coping with the increasing fuel and commodity prices amid the Middle East crisis. Castro stated that these initiatives are part of the government's ongoing efforts to limit the impact of external shocks on Filipino families.
