THE Financial Executives Institute of the Philippines (Finex) on Wednesday renewed a call for transparency and accountability in public spending amid lower-expected economic growth, weather-related disruptions and rising fiscal pressures.
“Slow growth limits opportunities for Filipino families, flood damage imposes real economic and human costs on communities, and the misuse of public funds weakens the country’s ability to respond, recover, and invest in long-term resilience,” the business group said in a statement.
Finex said responsible public spending was both a governance and economic necessity given the country’s current fiscal and economic circumstances.
The country’s poor second-quarter economic performance — growth slowed to 2.3 percent from 2.8 percent in January-March — was significantly lower than the government’s 3.5- to 4.5-percent target for 2026, it noted.
The national government’s debt-to-GDP ratio also increased to 65.2 percent as of the end of the first quarter, the highest level in over two decades.
The group said this could further restrict the government’s fiscal space and highlighted the significance of ensuring that borrowed funds are used effectively.
Poor governance and inefficient public spending, it added, can erode investor confidence, raise perceptions of sovereign and institutional risk and drive up the cost of capital for both the government and the private sector.
The government must spend but must do so effectively and with appropriate guardrails. “It is essential to ensure that every peso borrowed and every peso spent delivers meaningful economic and social returns,” Finex said
It urged authorities to conduct a thorough investigation into the alleged misappropriation of public funds, pursue the recovery of public funds or assets, and seek accountability from those responsible.
The government should also continue making significant investments in high-impact infrastructure and other priority initiatives under improved governance and accountability frameworks.
“Sound governance, fiscal responsibility, and stronger economic growth are complementary objectives, all of which are essential to investor confidence and sustainable and inclusive development,” Finex said.
