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) said on Thursday.
The move is part of the government’s efforts to create additional fiscal space to cushion the impact of the escalating geopolitical tensions in the Middle East, which continue to affect the global energy supply and prices.
The DBM said it is implementing strict efficiency measures across national government agencies by reducing non-essential Maintenance and Other Operating Expenses (MOOE).
“These include limiting official travel to essential activities, maximizing virtual engagements, strengthening energy conservation efforts, and streamlining operational expenditures,” it said.
“These measures are expected 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,” the DBM added.
DBM Acting Secretary Rolando Toledo said essential and frontline services, including education, health, and social protection, are exempt from the mandatory 20 percent cut in spending.
Toledo said government support will remain focused and deliberate, ensuring that limited resources reach those who need them most, without compromising 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 said.
The government has earmarked PHP238 billion to address the impact of the Middle East crisis on affected and vulnerable sectors.
The funding pool — 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.
Among the initial measures already underway are PHP2.5 billion in fuel subsidies for transport operators and an additional PHP1 billion for service contracting. (PNA)
