DBM: Budget releases hit ₧4.251T in January By Reine Juvierre S. Alberto
A
BOUT 62.6 percent of this year’s record national budget has been released as of the end of January, according to the Department of Budget and Management (DBM). Latest data from the DBM showed that P4.251 trillion of the P6.793-trillion national budget has been disbursed as of end-January. This leaves P2.542 trillion still undistributed. The January figure was lower than last year’s amount, when the government had released 64.9 percent, or P4.102 trillion, of the 2025
WORLD » A8
PAKISTAN SAYS IT STRUCK MILITANT HIDEOUTS ALONG AFGHAN BORDER AFTER SURGE IN DEADLY ATTACKS
ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
full-year budget. Status of the 2026 budget showed that various Cabinet departments received a total of P2.803 trillion as of end-January, or 75.9 percent of the P3.691-trillion program. Releases for special purpose funds (SPFs) reached P109.229 billion, or 20.6 percent of the P529.595 billion allocation. SPFs provide budgetary support to government corporations and local government units and include the contingent fund, miscellaneous personnel benefits fund, national disaster risk reduction and management fund, and pension and gratuity funds. Meanwhile, allotment releas-
es for automatic appropriations amounted to P1.369 trillion, or 57.3 percent of the P2.390 trillion set aside for such expenditures. These allocations are programmed annually and issued by the DBM upon compliance with the conditions provided by law. Broken down, the entire P1.190 trillion in national tax allotments and the P93.982-billion block grant had been completely distributed as of January. Some 10.6 percent, or P3.219 billion, of the P30.466-billion budget for the special account in the general fund was also disbursed in the first month of the year.
The DBM has yet to release several allocations, including the P480 million for pensions of former presidents or their widows, P28.7 billion for net lending, P950 billion for interest payments and P14.5 billion for tax expenditures fund and customs duties and taxes. This year’s national budget is 7.38 percent higher than the previous year’s P6.326- trillion program. Based on the government’s medium-term fiscal program, this year’s revenue target is set at P4.823 trillion, while expenditures are expected to reach P6.434 trillion. By 2027, the expenditure program is projected to hit P7.232 trillion.
BusinessMirror A broader look at today’s business
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR
(2017, 2018, 2019, 2020, 2021) DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
BSP EASING CYCLE SEEN ENDING ON COSTLY OIL www.businessmirror.com.ph
T
n
Monday, February 23, 2026 Vol. 21 No. 134
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Andrea E. San Juan
HE Bangko Sentral ng Pilipinas (BSP) may soon hit the brakes on monetary easing as it braces for evolving inflation dynamics, which includes potential oil price spikes, according to some analysts. “We expect the April rate cut that we forecast to mark the end of the easing cycle, leaving the terminal rate at 4 percent,” said BMI, a unit of Fitch Solutions. Among the factors priced in, it added, is inflation accelerating towards the ceiling of the BSP’s target band. “We forecast inflation to pick up towards BSP’s inflation rate upper bound target as favorable base effects fade,” said BMI. Moreover, it noted that the flexible rice tariff of 15 to 35 percent alongside higher electricity rate tariffs will be passed on to consumers.
“Our tracker currently forecasts an average inflation of 3.1 percent in 2026, with price growth being especially rapid during H2 [the second half],” it noted. In line with this, BMI warned that the Philippines being a net oil importer leaves it “susceptible” to rising oil prices. “Indeed, in our oil scenario analysis, we have flagged potential disruptions in the Straits of Hormuz that may result in oil prices spikes to varying degrees. Should such disruptions escalate, this will push up inflation and constrain BSP’s room See “BSP,” A2
70% DIGITAL SHARE FOR RETAIL PAYMENTS NOT DOABLE IN 2028 By Andrea E. San Juan
T
@andreasanjuan
HE target set under the Philippines’s economic blueprint for the volume of digital payments to corner 70 percent of the pie of retail transactions by 2028 may not be achieved due to cyber risks. In a televised interview, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. pointed out that the growth of digital payments has been “slow,” adding that digitalization brings with it some risks.
“To be honest, it’s been slow. We’re on track but maybe it will take a couple more years than we thought to get where we want to go,” Remolona said in a televised interview. Asked if this could go beyond the aspiration set in the Philippine Development Plan 20232028 to hit the goal by 2028, the central bank governor said: “Yeah, I think so.” Remolona said this as he noted that digitalization, in the context of digital payments, persists in the country but warned See “Payments,” A2
SHEAR FORCE, SHEER LOSS Days of relentless rains triggered by the shear line displaced 52,044 residents and left P15.4 million in damage across Agusan del Sur. Floodwaters from the swelling Agusan River submerged 42 barangays, while landslides hit 14 more. In hard-hit Bunawan, families fled waist-deep waters as currents intensified overnight. At least 13,925 families were forced from their homes. Agriculture bore the brunt, with nearly P9.3 million in crop losses, while infrastructure damage reached P6.1 million. Authorities say water levels are gradually receding, but thousands remain displaced as recovery begins. Story on A12. Erwin Mascariñas
ERC sets price cap for wind power auction
T
By Lenie Lectura
HE Energy Regulatory Commission (ERC) has set a price cap of P11-per-kilowatt hour (kWh) for the upcoming offshore wind (OSW) auction this year. The final green energy auction reserve (GEAR) price for the fifth round of the Green Energy Auction Program (GEAP) is higher than the preliminary rate of P10.3859/kWh. According to the ERC, the adjusted GEAR price took into consideration the capacity factor, port rental, fishery compensation, and land acquisition or rental costs, as well as inflation and foreign exchange assumptions. At the same time, the ERC said certain components were also reduced or removed, including the cost
of equity and decommissioning costs. The GEAR price serves as the maximum price in pesos per kWh that will be used as the basis for bid offers during the auction. The OSW auction, known as GEA-5, forms part of the DOE GEAP, the government’s primary mechanism for procuring renewable energy (RE) capacity to achieve the clean energy target. For the fifth round, the auction targets 3,300 megawatts (MW) of fixed-bottom offshore wind capacity for delivery between 2028 and 2030. The ERC has also set for March 9 and 10 the next round of public consultations on the implementation of one-time indexation. Following the consultations, the ERC will finalize the indexation framework and issue the implementing guide-
lines under GEA-5. Indexation accounts for cost changes from the time the project contract was awarded up to the commercial operation. The creation of the tariff indexation rules is critical to the GEA-5, as this will allow for adjustments to the GEAR price based on changes in foreign exchange (forex) rates and inflation, among others. “Between the date of award and the date for the start of delivering the power, there may be substantial increases in their cost when putting up the plant. The significant increase in cost pertains to their forex cost, because a lot of the cost of OSW is imported and will be paid for in forex. As such, under the DOE (Department of Energy) circular, they can issue an upward adjustment
based on the indexation formula that ERC is supposed to establish,” said ERC chairperson Francis Saturnino Juan when sought for comment. Besides, stakeholder feedback will help ensure that the indexation framework reflects project cost realities while maintaining consumer protection, the agency added. The DOE formally presented a 10-year GEAP that will offer at least 25 gigawatts (GW) of additional RE capacity through annual competitive auctions beginning this year, with project deliveries starting as early as 2027 and running through 2035. This 10-year auction plan could attract as much as P25 trillion worth of investments, according to Energy Secretary Sharon Garin. More See “ERC,” A2
PESO EXCHANGE RATES n US 57.9640 n JAPAN 0.3740 n UK 78.0717 n HK 7.4179 n CHINA 8.3965 n SINGAPORE 45.7201 n AUSTRALIA 40.9110 n EU 68.2526 n KOREA 0.0400 n SAUDI ARABIA 15.4546 Source: BSP (February 20, 2026)