The Philippines’ widening funding shortfall and rising debt are limiting the government’s ability to provide adequate financial assistance to millions of households hit by the Middle East oil crisis, according to a June discussion paper by the Congressional Policy and Budget Research Department (CPBRD) of the House of Representatives, as reported by BusinessWorld.
The CPBRD paper highlighted that the government’s strained fiscal position, exacerbated by elevated debt levels and a shrinking fiscal space, now restricts its capacity to roll out large-scale subsidy programs or emergency cash transfers. This comes as rising fuel prices from the Middle East conflict continue to pressure household budgets, particularly among low-income Filipinos.
The report urged Congress to explore alternative funding mechanisms and prioritize spending on targeted aid, warning that without fiscal consolidation, further economic shocks could overwhelm social protection systems. The CPBRD also recommended reviewing tax expenditures and improving revenue collection to create more room for emergency response.