DBM says P1.3-trillion spending to lift economy

THE GOVERNMENT is betting that its P1.31-trillion programmed spending for the fourth quarter will lift full-year economic growth this year, Budget Secretary Amenah F. Pangandaman said on Thursday.

The Department of Budget and Management (DBM) has programmed P1.31 trillion for disbursement during the October-to-December period.

“Our programmed spending for the fourth quarter will boost year-end economic growth and thus impact overall economic growth for the year,” Ms. Pangandaman, who also serves as the Development Budget Coordination Committee chairperson said.

In the first six months of 2025, the gross domestic product grew by 5.4%, slightly below the government’s 5.5% to 6.5% growth goal. 

The third-quarter data will be released on Nov. 7.

However, the economy faces a possible slowdown as government spending is affected by a widening corruption scandal.

Ms. Pangandaman has said the slowdown in public infrastructure spending is temporary, with spending expected to “catch up” in the remaining months of the year.

The bulk of the amount allocated for social services, following President Ferdinand R. Marcos, Jr.’s directive “to ensure that spending for the final stretch of 2025 directly benefits the Filipino people,” the DBM said.

The DBM said P2.74 billion was allotted for the National Disaster Risk Reduction and Management Fund (NDRRMF), which will go to the Quick Response Fund (QRF), as well as emergency cash transfers.

QRFs are built-in budgetary allocations that represent pre-disaster or standby funds for agencies in order to immediately assist areas stricken by catastrophes and crises.

In addition, the DBM released P9.52 billion to the Department of Social Welfare and Development to fund key social protection programs, including the remaining balance for the Pantawid Pamilyang Pilipino Program (4Ps).

It also disbursed P7.03 billion for payouts under the Assistance to Individuals in Crisis Situation (AICS), P5.77 billion for social pensions for indigent senior citizens, and P4.83 billion for the social aid program Ayuda sa Kapos ang Kita (AKAP).

In addition, the Department of Agriculture has been allocated P7.33 billion for the National Rice Program, and P2.47 billion for the National Livestock Program.

“Another P2.29 billion is also available under the National Food Authority for the buffer stocking program and targeted rice distribution program to ensure the availability of rice, especially in case of unforeseen domestic and global headwinds,” it said. 

For the education sector, the DBM released P203.82 billion for the Department of Education for the fourth quarter, with P153.71 billion allocated for benefits and year-end bonus of teachers and personnel. An additional P11.4 billion has been disbursed for the Salary Standardization Law adjustments.

Meanwhile, P23.62 billion is released for the operations of schools, while P32.79 billion is earmarked for government assistance and subsidies.

State Universities and Colleges and the Commission on Higher Education received P31.78 billion, which will fund the implementation of key higher education programs and funding of personnel benefits and requirements.

For the labor sector, the DBM disbursed P4.89 billion for the Department of Labor and Employment’s livelihood and emergency employment programs.

Meanwhile, the healthcare sector received P4.3 billion for the support of operational expenses of hospitals in Metro Manila and P9.96 billion for regional hospitals.

The DBM also released P787.95 million worth of subsidies under the Medical Assistance to Indigent and Financially-Incapacitated Patients and another P179 million for the Cancer Assistance Fund.

In addition, P528.09 million has been earmarked for Department of Migrant Workers’ programs such as the Overseas Filipino Workers Hospital, the Agarang Kalinga at Saklolo para sa mga OFWs na Nangangailan Fund, and the National Reintegration Center for OFWS.

Out of this fund, P321 million has been allotted for the Emergency Repatriation Program of the Overseas Workers Welfare Association.

In a separate statement on Thursday, the Department of Finance said the government will disburse P63.69 billion in year-end bonuses and P9.24 billion in cash gifts to over 1.85 million state employees nationwide.

As of Oct. 27, the DBM has already disbursed P1.133 trillion of Notices of Cash Allocations out of the P1.307-trillion program for the fourth quarter. — Aubrey Rose A. Inosante