(Manila, 2nd)—On Tuesday, Philippine Finance Secretary Ralph Recto stated at a Senate Development Budget Coordinating Committee briefing that the national budget for fiscal year 2026, amounting to 6.79 trillion pesos, will focus on development projects 'with the highest multiplier effect,' covering areas such as infrastructure, education, healthcare, agriculture, and social welfare.
Recto emphasized that budget implementation must achieve 'no ghost projects, no corruption, no wastage,' and pointed out that good fiscal spending is key to enhancing the public's willingness to comply with tax obligations.
He revealed that the government plans to allocate 5 to 6% of GDP for infrastructure, 4% for education, and another roughly 4% each for healthcare, agriculture, and social welfare projects.
Recto also mentioned that despite facing war, trade friction, and climate risks globally, the Philippine economy continues to outperform expectations. The inflation rate in July dropped to 0.9%, far below this year's global average of 4.2%.
He added that since 2022, the Philippines has created 6 million new jobs, bringing total employment to 50.5 million, with 31.8 million holding stable formal jobs, demonstrating a growing middle class. The consumer market is expected to rank 13th globally by 2030.
This budget is in line with the medium-term fiscal plan, aiming to create jobs, reduce deficits and debt, and bring the poverty rate down to single digits—all to be achieved before the end of President Marcos' term.