Category: Philippines Daily Inquirer

The government’s budget deficit ballooned by 461.7 percent to P106.3 billion in July from P18.9 billion last year as a sharp ramp-up in spending outpaced subdued revenue growth.

Total revenues modestly rose 2 percent to P482.3 billion from P472.3 billion.

Tax collections climbed 7 percent to P452.7 billion from P423 billion, while nontax revenues contracted by 40 percent to P29.6 billion from P49.3 billion.

Meanwhile, expenditures jumped nearly 20 percent to P588.6 billion from P491.2 billion amid the implementation of the Unified Package for Livelihood, Industry, Food, and Transport framework, as well as higher disbursements for defense modernization and foreign-assisted rail projects.

From January to July, the fiscal shortfall now stands at P893.1 billion, equivalent to 53.9 percent of the government’s full-year ceiling of P1.658 trillion.

The jump in expenditures, however, did not extend to infrastructure.

Infra spending

A year into the fallout from the flood control corruption scandal, government infrastructure spending continued to slump after falling by 40 percent in the first half of 2026.

Latest data from the Department of Budget and Management (DBM) showed infrastructure and other capital outlays plunged 40.8 percent to P367.4 billion from January to June, from P620.2 billion in the same period last year.

This was equivalent to only 39 percent of the P931.54-billion program for the period.

Including equity and capital transfers to local government units, total infrastructure-related spending reached P548.3 billion, down 26.3 percent from P743.6 billion a year earlier.

This was also less than half of the revised P1.272-trillion program.

Spending in June alone fell 34 percent to P98 billion from P148.8 billion a year earlier.

‘The decline in year-on-year spending partly reflected the implementation of strengthened review, audit, validation, and documentary safeguards intended to ensure that government payments are made only for properly verified and compliant infrastructure works,’ DBM said.

Recovery

The DBM is now eyeing a recovery in infrastructure spending in the third quarter on the back of higher DPWH allotments.

‘We are not proposing any relaxation of safeguards. In fact, we want more safeguards. What we are looking at is how we can hasten implementation and procurement,’ DBM Acting Secretary Kim Robert De Leon said on Thursday.

The Philippines has gone from having one of the lowest estimated rates of new HIV infections among adolescents in Southeast Asia in 2000 to recording the region’s highest estimated incidence in 2025, according to newly released Unicef data.

The estimated incidence of new HIV infections among Filipinos ages 15 to 19 reached 0.49 per 1,000 uninfected adolescents in 2025, up from below 0.01 per 1,000 in 2000, based on Unicef’s Key HIV epidemiology indicators for children and adolescents aged 0-19, 2000-2025.

The figures were analyzed by University of the Philippines Diliman associate professor and Inquirer data scientist Dr. Rogelio Alicor Panao, who noted that the Philippines’ trajectory was markedly different from those of several Southeast Asian countries that started with higher estimated adolescent HIV incidence.

‘Twenty-five years ago, the Philippines was among the Southeast Asian countries least affected by HIV among adolescents. Today, it has the region’s highest estimated incidence,’ Panao said.

‘Put another way, that is about 49 new infections for every 100,000 uninfected adolescents in a year, or roughly one for every 2,000,’ he added.

As a rough illustration of the rate, Panao noted that in a high school with about 10,000 students, it would correspond to around five new infections in a year.

From one of the lowest to the highest

Unicef data showed that the Philippines had an estimated adolescent HIV incidence of below 0.01 per 1,000 in 2000. Its estimated rate then rose to 0.10 in 2011, 0.25 in 2019 and 0.49 in 2025, according to Panao.

‘Interestingly, countries in ASEAN that started much worse have gone in the opposite direction,’ Panao said.

Thailand, for instance, reduced its estimated incidence from 1.80 per 1,000 in 2000 to 0.29 in 2025. Myanmar brought its rate down from 1.26 to 0.43, while Cambodia reduced its estimate from 0.68 to 0.16.

Panao described the contrast as significant because the Philippines started with a much smaller estimated adolescent HIV problem than those countries.

‘Twenty-five years ago, the Philippines was among the Southeast Asian countries least affected by HIV among adolescents. Today, it has the region’s highest estimated incidence,’ he said.

Philippines has taken steps

Still, Panao noted that the Philippines has introduced measures aimed at improving HIV prevention and access to testing.

Under Republic Act No. 11166, the age of consent for voluntary HIV testing was lowered to 15. The Philippines has also added pre-exposure prophylaxis, or PrEP, to the Philippine National Formulary.

Comprehensive sexuality education has likewise been expanded.

However, Panao said implementation remains uneven ‘due to local resistance, cultural taboos and other institutional bottlenecks.’

Prevention needs to reach young people

Panao said the rise in estimated incidence calls for consideration of measures that could make HIV prevention and testing more accessible to adolescents.

‘[M]aybe it is time to give serious thought to expanding confidential, routine HIV testing beyond traditional clinics; ensuring consistent access to condoms, PrEP and HIV self-testing; strengthening comprehensive sexuality education; and bringing youth-focused prevention into the spaces where young people actually seek information and support, including online platforms,’ he said.

He said the experience of other countries in the region shows that high adolescent HIV incidence is not necessarily irreversible.

‘Thailand, Myanmar and Cambodia have shown that high adolescent HIV incidence can be pushed down,’ Panao said.

‘The Philippines began with a much smaller problem. It now stands to face a much bigger one,’ he added.

Four Benguet towns suspended face-to-face classes on Friday (Aug. 28), as the province braces for potentially heavy rainfall brought by the prevailing southwest monsoon.

In Kibungan, face-to-face classes from daycare to senior high school, including its Alternative Learning System (ALS) program were cancelled due to the orange rainfall warning issued by the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA).

Buguias likewise suspended face-to-face classes from daycare to senior high school, including ALS, under Executive Order No. 96, series of 2026.

The suspension in Atok covers preschool to elementary classes.

Meanwhile, Bakun suspended face-to-face classes in all elementary and secondary levels extending its earlier suspension of classes on Thursday afternoon (August 27) amid heavy rainfall and inclement weather.

The suspensions came after Pagasa Weather Advisory No. 19 forecast accumulated rainfall of 100 to 200 millimeters over Benguet from noon Friday until Saturday (Aug. 29).

An orange rainfall warning indicates that moderate to heavy rain may pose a serious risk of flooding and landslides.

Local governments urged parents, guardians, learners and school personnel to remain vigilant, avoid unnecessary travel and monitor official advisories.

Buguias officials also reminded learners not to loiter in public places while classes are suspended.

The latest suspensions add to the continuing weather-related disruptions in Benguet, where prolonged monsoon rains have triggered floods, landslides and other hazards.

All 13 municipalities in this province suspended face-to-face classes at all levels in public and private schools on Friday amid non-stop heavy rain.

The affected municipalities are Subic, Castillejos, San Marcelino, San Antonio, San Narciso, San Felipe, Cabangan, Botolan, Iba, Palauig, Masinloc, Candelaria, Santa Cruz, as well as nearby Olongapo City.

The municipalities and city government issued similar advisories, with several encouraging schools to use alternative learning modalities such as online, modular, or asynchronous classes.

The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) maintained its heavy rainfall outlook for Zambales.

In its latest forecast, 100 to 200 millimeters of rain is expected over Zambales from Friday to Sunday (Aug. 30), with rainfall potentially higher in mountainous and elevated areas.

The Department of Energy (DOE) hopes major power players will invest in the country’s first coal blending terminal to maximize domestic coal supply and reduce the Philippines’ vulnerability to foreign policy changes.

On Thursday, Energy Secretary Sharon Garin told reporters that the DOE is mulling building a centralized blending facility to reduce local coal power plants’ imports from Indonesia.

The ideal location is Mindanao due to its coal sites and port terminals, with Garin expressing optimism that private sector development will occur with minimal government oversight.

The blending terminal will source both domestic and foreign coal, combining high- and low-grade varieties for industrial needs.

The Philippines relies on Indonesia for over 90 percent of its coal needs. However, Indonesia will revise its export guidelines in January, potentially impacting the Philippines.

‘We don’t have energy security as far as coal is concerned, because 95 percent of our coal is imported from Indonesia. Anything can happen,’ she said on the sidelines of the 15th Energy Smart Forum in Makati City.

‘So what we need is to have a diversification of our risk. So we need to source it from different countries if there’s an option, or the best option is to source it in our country. Most of our coal, they say, is not good enough for our coal power plants. But there’s a way to do that: we can mix our coal with something that can be useful for our coal power plants,’ Garin added.

Garin said the government is negotiating with Australia, Russia, and others for new supplies since the blending facility won’t be operational soon.

At the same time, the DOE is preparing for a coal mine auction, including the Semirara site, before the year ends

The Romblon State University (RSU) has warned its suppliers, contractors, service providers and other stakeholders against individuals allegedly soliciting money, gifts, favors or other benefits while invoking the name or association of the state university.

In an Aug. 27 official statement, RSU said it had received reports of alleged solicitation activities involving individuals who purportedly approached entities doing business or seeking to do business with the university.

The university stressed that unauthorized solicitation from its suppliers, contractors, partners and stakeholders is strictly prohibited.

‘No official, employee, representative, or other individual has authority to use the name, office, position, influence, or institutional relationship of Romblon State University to seek personal favors or benefits,’ RSU said.

The university said its policy is anchored on Republic Acts No. 6713 and 3019, as well as Presidential Decree 46, which prohibit public officials and employees from soliciting or receiving gifts, favors or benefits connected with their official duties or government transactions.

RSU also cited Republic Act No 12009 (the New Government Procurement Act) , which promotes transparency, accountability, integrity and professionalism in government procurement.

The university urged suppliers, contractors, partners and other stakeholders to immediately report anyone soliciting money, gifts, contributions, favors or other benefits while claiming to represent RSU, a university official or any university office.

It also advised complainants to preserve evidence, including messages, screenshots, names, contact details, receipts and other information that could help in the verification and investigation of reports.

RSU said it would promptly investigate complaints brought to its attention. University officials or employees found liable, after due process, would face appropriate action under university rules, civil service regulations and existing laws.

Cases may also be referred to the proper authorities for administrative, civil or criminal action, when warranted.

‘RSU remains firm in protecting the integrity of its transactions and procurement processes,’ it said, calling on its community and partners to help safeguard transparency, accountability and public trust in all transactions involving the university.

The Philippines may post its weakest growth in nearly two decades this year, outside of the Covid-19 pandemic, as high inflation bites the economy where it hurts the most: consumer spending.

Gross domestic product (GDP) is projected to expand 3.4 percent in 2026 from a year earlier, officials of the Asean+3 Macroeconomic Research Office (Amro) said on Thursday after completing their annual consultation visit to the Philippines.

That was lower than Amro’s previous estimate of 4.1 percent back in July. Excluding the pandemic-led meltdown in 2020, the revised forecast would mark the slowest pace of expansion since 2009-back when the onslaught of typhoons and the aftermath of the global financial crisis dragged GDP growth to just 1.4 percent.

The updated projection also suggested that the Marcos administration may miss its watered-down growth target of 3.5 percent to 4.5 percent for this year. The Philippines, a net energy importer, has been among the economies in the region hardest hit by the global oil shock stemming from the conflict in the Middle East, Amro said.

Inflation is expected to rise sharply to 5.4 percent in 2026 from 1.7 percent in 2025, before moderating to 3.8 percent in 2027, Amro said. This, in turn, could weigh on household spending, which historically accounts for about 70 percent of GDP.

‘Growth this year will be weighed down by weaker private consumption amid higher inflation and subdued investment, although a gradual recovery in public construction in the second half of the year and resilient exports should provide some support,’ said Jinho Choi, lead economist and head of the Amro visiting team.

The slowdown was already evident in the first quarter, when the economy expanded just 2.8 percent from a year earlier. Growth was weighed down by the fallout from the Middle East conflict, which hit an economy still recovering from a confidence shock linked to a major corruption scandal.

Amro said growth may rebound to 4.8 percent next year. But this was a less bullish outlook than the group’s previous estimate of 5.5 percent.

Looking ahead, Amro said the policy mix should balance the need to contain inflation with support for economic growth.

‘Fiscal policy should remain responsive to cyclical downturns by restoring well-governed infrastructure investment, while maintaining a firm commitment to medium-term fiscal consolidation,’ it said.

‘Monetary policy should remain data-dependent. Further rate hikes would be warranted if core inflation remains elevated and persistent or inflation expectations show signs of becoming de-anchored,’ it added. INQ

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Heavy rainfall will prevail over the western portion of Luzon on Friday, August 28, according to the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa).

In the agency’s weather forecast on Friday morning, Pagasa weather specialist Obet Badrina said heavy rains were expected over the regions of Metro Manila, Ilocos, Central Luzon-particularly Bataan and Zambales-and Calabarzon as well as the province of Occidental Mindoro.

‘Ang nalalabing bahagi ng Luzon ay makararanas naman ng maulap na kalangitan na may mga kalat-kalat na mga pag-ulan, pagkidlat at pagkulog, lalong-lalo na itong silangang bahagi ng Luzon,’ Badrina explained.

(The rest of Luzon will experience cloudy weather conditions with scattered rain showers, especially in the eastern section of Luzon.)

Palawan province and Visayas will likewise experience cloudy weather conditions with chances of scattered rain showers.

Meanwhile, according to the Pagasa weather specialist, Mindanao will experience partly cloudy to cloudy weather conditions with chances of isolated rain showers.

‘Kung mapapansin natin, sa Mindanao, walang masyadong namamataan tayong tuloy-tuloy na mga pag-ulan. Medyo mainit nga yung panahon dito sa may bahagi ng Mindanao,’ Badrina added.

(If you notice, we don’t see much rain in Mindanao. The weather now is rather hot in Mindanao.)

The state weather bureau also monitored a low pressure area (LPA) located 720 kilometers (km) east of Itbayat, Batanes as of 3 a.m. on Friday.

Badrina, however, noted that the LPA will not have a direct effect on the Philippines and will instead head in the direction of Taiwan.

Despite this development, the Pagasa weather specialist said the agency did not issue a gale warning over the Philippines’ seaboards.

‘Gayunpaman, mag-ingat pa rin kung may thunderstorms. Kung minsan, nagpapalakas yan ng alon ng karagatan. Kaya mag-ingat, lalong-lalo yung mga maliliit na bangka,’ he noted.

(Nonetheless, take caution when there are thunderstorms. Those can sometimes strengthen the waves in the seas. Be cautious, especially for the small vessels.)

Sumitomo Mitsui Finance and Leasing Co. Ltd. (SMFL) has completed its acquisition of a 30-percent stake in the leasing arm of Rizal Commercial Banking Corp., giving the Japanese firm a bigger foothold in the Philippines.

On Thursday, the Yuchengco-led bank said SMFL had secured the necessary regulatory approvals and permits to complete the transaction.

Following the acquisition, RCBC Leasing and Finance Corp. (RLFC) is now an equity method affiliate company of SMFL. The leasing firm was previously wholly owned by RCBC.

RLFC president and CEO Jayson Mendoza said the investment would support the company’s expansion over the next three to five years.

The company is targeting growth in priority sectors such as manufacturing, construction, information technology, renewable energy-including electric vehicles and solar panels-healthcare, logistics and auto leasing.

‘This investment positions us well for the opportunities ahead and strengthens our capabilities that will drive our business forward,’ Mendoza said.

For SMFL, the investment expands its business base in the Philippines, where it expects strong economic growth and increasing demand for financial services.

The Japanese firm plans to combine its sales and management expertise with RCBC’s customer base and RLFC’s team structure as it grows its local operations.

The transaction also deepens RCBC’s ties with Japan’s Sumitomo Mitsui group.

Sumitomo Mitsui Banking Corp. (SMBC), another member of the group, currently owns a 24.46-percent stake in RCBC and serves as its partner bank in the Philippines.

SMFL said it remained committed to expanding its global business through collaboration with SMBC Group and other partners.

RLFC, which was incorporated in 1987, is engaged in financial leasing and operating leases through its wholly owned subsidiary.

It maintains a nationwide presence with five offices in Luzon, Visayas and Mindanao.

The Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) hoisted the red heavy rainfall warning over parts of Zambales and Bataan on Friday morning, Aug. 28.

The red heavy rainfall warning means at least 30 millimeters (mm) of rain is expected in the affected areas within an hour and it will continue in the next two hours, which may bring severe flooding in low-lying areas.

In an advisory at 8 a.m. on Friday, Pagasa said the following areas were covered by the red heavy rainfall warning:

Zambales (Cabangan, Botolan, Subic, San Antonio, San Marcelino, Castillejos, San Narciso, San Felipe, and Olongapo); and

Bataan (Morong, Dinalupihan, and Hermosa)

The state weather bureau also raised the orange heavy rainfall warning over the following:

Tarlac

Pampanga

Bulacan

The rest of Zambales (Candelaria, Masinloc, Palauig, Santa Cruz, Iba), Bataan(Abucay, Bagac, Balanga, Limay, Mariveles, Orani, Orion, Pilar, Samal); and

Nueva Ecija (San Antonio, Cabiao, San Isidro, Gapan, General Tinio, Penaranda, Jaen, San Leonardo, Guimba, Santo Domingo, Quezon, Licab, Zaragoza, Aliaga, Santa Rosa, Cabanatuan, Gabaldon, Laur, Palayan, Bongabon, Rizal, General Mamerto Natividad, Llanera, and Talavera)

The orange heavy rainfall warning means between 15 to 30 mm of rain is expected in the affected areas within an hour and it will continue in the next two hours.

Further, Pagasa raised the yellow heavy rainfall warning over the following areas:

Metro Manila

Rizal; and

The rest of Nueva Ecija (Carranglan, Cuyapo, Lupao, Nampicuan, Pantabangan, San Jose, Munoz, and Talugtug)

The yellow heavy rainfall warning means between 7.5 to 15 mm of rain is expected in the affected areas within an hour and it will continue in the next two hours.

Meanwhile, according to Pagasa, light to moderate rains were expected over the following areas in the next three hours:

Cavite

Batangas (Balayan, Calatagan, Laurel, Lian, Nasugbu, Talisay, Tuy, Tanauan, Calaca, San Nicolas, Agoncillo, Lemery, Taal, Batangas City, Santo Tomas, Malvar, Balete, Lipa, Mataasnakahoy, Ibaan, San Jose, Cuenca, San Pascual, Alitagtag, Bauan, Santa Teresita, San Luis, and Mabini)

Quezon (General Nakar and Infanta); and

Laguna (Santa Maria)

In the agency’s forecast on Friday morning, Pagasa weather specialist Obet Badrina said the southwest monsoon, locally known as the habagat, continued to affect parts of Luzon