MANILA, Philippines — Budget authorities have 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.
To create additional fiscal space, Toledo said they planned to implement a 20-percent reduction in non-essential Maintenance and Other Operating Expenses (MOOE) across 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 ranging from P12.8 billion to P25.6 billion from March to December 2026, depending on the level of compliance among agencies.
