Go pushes economic efficiency in 2026 budgets

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December 25, 2025 | 12:00am

MANILA, Philippines —  Government agencies should skip low-yield projects and prioritize spending plans that deliver greater efficiency and higher economic impact in 2026, according to Finance Secretary Frederick Go, following reported losses and alleged fund misuse linked to the flood control issue.

As part of the administration’s reform, Go asked agencies to support the country’s fiscal discipline efforts by directing funds toward projects with the highest economic multiplier, ensuring that public spending generates the greatest impact on growth and job creation.

“The key to fiscal discipline is that all the agencies take a very good look at their budgets and focus on the expenditures with the highest efficiency, the highest productivity and perhaps forego some of their projects or expenditures that have low efficiency or productivity,” he said.

In September, the Department of Finance reported that economic losses from corruption in flood control projects may have averaged P118.5 billion annually from 2023 to 2025. Without such losses, the economy may have expanded by as much as six percent.

This also includes the creation of 95,000 to 266,000 potential jobs, a level significant enough to stimulate economic activity and provide a substantial boost to growth.

For 2026, the national budget is set at P6.793 trillion, with the education sector receiving the highest chunk.

“The Ombudsman has promised prosecution. I believe it is coming between now and the first quarter of next year. We’ve also announced restitution of about P12 billion,” Go said.

He added that a successful prosecution, restitution and genuine reform could accelerate economic growth in the first quarter, noting that holding key individuals accountable would have a direct impact on the economy.

Average economic growth from January to September stood at five percent, below the government’s target of 5.5 to 6.5 percent for the year.

The billion-peso amount to be returned to the government is in the form of cash returned by engineers of the Department of Public Works and Highways, the sale of luxury vehicles of contractor couple Sarah and Curlee Discaya and the freezing of bank accounts of individuals involved in the flood control fiasco.