The Philippine government would need P429 billion to fund support and relief if the Middle East conflict extends until December, according to the Department of Economy, Planning and Development. Secretary Arsenio Balisacan presented the estimates at yesterday's Senate PROTECT committee hearing. The measures include transport support, fuel and fertilizer subsidies, and social protection for the poor.
At yesterday's hearing of the Senate PROTECT committee, which stands for Proactive Response and Oversight for Timely and Effective Crisis Strategy, DEPDev Secretary Arsenio Balisacan presented estimates of P146.8 billion for April to June. He described these as indicative figures, not final, and said they would consult implementing agencies soon for precise numbers.
The Department of Budget and Management has identified P238 billion from 2025 and 2026 appropriations, with P125 billion released as of April 1 and P113.4 billion available for release. Balisacan noted that extending the crisis to July through December would demand far greater resources.
Balisacan stated he does not foresee an economic contraction this year, though the 5-6 percent growth target is no longer achievable. Analysts now project 3-4 percent growth, following last year's 4.4 percent expansion against a 5.5-6.5 percent goal. Trade Secretary Cristina Roque reported that the Department of Trade and Industry received 1,820 loan applications from micro, small, and medium enterprises totaling P3.2 billion amid rising costs.
Senate committee chairman Sen. Sherwin Gatchalian warned the conflict costs P70-85 billion monthly, depleting the P238.6 billion standby funds in about two and a half months. DBM Secretary Rolando Toledo confirmed the burn rate and said agencies must cut non-essential expenses like travel and training to save P12-25 billion. The executive may invoke Executive Order 110 for further budget repurposing. Foreign Affairs Secretary Ma. Theresa Lazaro affirmed the Philippines-Iran agreement for safe passage through the Hormuz Strait remains in force despite President Trump's blockade announcement.
