The Department of Budget and Management (DBM) ordered national government agencies to reduce non-essential spending to fund targeted assistance programs and cushion the impact of rising global oil prices.
“In times like this, targeted subsidies are the most prudent approach — ensuring that limited resources reach those who need them most, without compromising fiscal stability,” Budget Secretary Rolando Toledo said on Thursday.
Toledo said they plan to implement a 20-percent reduction in non-essential Maintenance and Other Operating Expenses in national government agencies. The spending cuts cover limits on official travel, greater use of virtual engagements, stronger energy conservation efforts, and streamlining of operational expenditures.
The department estimates the efficiency measures could generate savings from P12.8 billion to P25.6 billion from March to December 2026.
Data from the Budget of Expenditures and Sources of Financing showed that maintenance and other operating expenses are expected to edge up slightly to P1.02 trillion this year from P1.01 trillion.
Toledo said sectors education, health, and social protection are programs are exempted from the cuts to ensure uninterrupted delivery of public services.
He said that critical services will be uninterrupted.
“The DBM continues to work closely with implementing agencies to ensure the timely and effective delivery of interventions, reinforcing the government’s commitment to cushion the impact of rising global oil prices on Filipino households,” Toledo said.
Moreover, the Budget chief said they have P238 billion in available funding to support the government’s response to the ongoing global oil crisis Initial interventions have been rolled out, including P2.5 billion in fuel subsidies for transport operators and an additional P1 billion for service contracting.
The government is also extending support through repatriation programs of the Department of Migrant Workers, including assistance provided by the Overseas Workers Welfare Administration.
