President Ferdinand R. Marcos Jr. expressed strong confidence that the government will catch up with and surpass last year’s levels of public spending by the final quarter of 2026. Speaking at the Foreign Correspondents Association of the Philippines (FOCAP) Presidential Luncheon held at the Diamond Hotel in Manila, the Chief Executive noted that while administrative reviews initially delayed certain project rollouts, implementation schedules are now back on track.
President Marcos explained that a meticulous re-examination of the national budget earlier in the year led to projects and contracts being bid out toward the end of the first quarter. To counter this shortfall, the administration introduced targeted measures to expedite government expenditures, successfully narrowing the year-on-year spending gap to approximately 7 percent by the close of the second quarter.
The administration anticipates that accelerated government disbursements will stimulate increased economic activity and contribute to higher gross domestic product (GDP) growth. However, President Marcos cautioned that increased spending must be carefully managed alongside the delivery capabilities of both government agencies and private contractors.
“What we are running into very much is the absorptive capacity, not only of the government agencies, but also of the contractors,” President Marcos stated, emphasizing that financial inputs must be balanced with practical implementation limits.
Alongside infrastructure and project expenditures, public funds continue to be channeled toward direct assistance programs designed to protect households from elevated food and fuel costs. Key initiatives highlighted by the administration include:
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Transport sector support and diesel subsidies.
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Lowered tariffs on imported rice.
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The expansion of the subsidized rice program benefiting approximately 7.5 million Filipino families.
The President also pointed to broader macroeconomic stabilization efforts aimed at mitigating external economic pressures, particularly fluctuations in global oil prices and supply chain uncertainties tied to geopolitical developments in the Middle East. With public expenditures returning to their scheduled pace, the administration remains optimistic about strengthening economic resilience and achieving stronger growth throughout the remainder of the year.
