House opens debates on 2026 budget By Jovee Marie N. dela Cruz
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OWING to prevent a repeat of past fund mismanagement, the House of Representatives on Tuesday formally began plenary debates on the proposed 2026 P6.793-trillion General Appropriations Act, emphasizing that every peso should directly benefit Filipinos through essential services, job creation, and sustained economic recovery. In her sponsorship speech, House Committee on Appropriations Chairperson Rep. Mikaela
Angela B. Suansing vowed to uphold accountability by ensuring that allocations are science-based, transparent, and responsive, while denouncing past instances of fund mismanagement. She also said that the budget is not just a policy document but a “backbone of fiscal policy” and a mirror of government priorities. Suansing acknowledged the country’s difficult fiscal environment while expressing confidence in the macroeconomic assumptions laid out by the Development Budget Coordination Committee (DBCC).
“We deliberate today under a challenging fiscal landscape. Global uncertainty continues to weigh on our economy: rising debt obligations, inflationary pressures reducing both household and government purchasing power, and geopolitical disruptions in international markets,” Suansing said. Despite these headwinds, she noted that the 2026 spending plan is anchored on a sound macroeconomic framework crafted by the DBCC. The projections include gross domestic product (GDP) growth of 6.0 to 7.0 percent; inflation maintained within 2.0 to
4.0 percent; a fiscal deficit target of 5.3 percent of GDP; and a debtto-GDP ratio at a sustainable 61.8 percent by end-2026. Suansing emphasized that these fiscal targets are designed to ensure that the government can sustain growth while keeping its debt burden manageable. She added that the committee will scrutinize agency allocations to ensure every peso is maximized for programs that directly benefit Filipinos. A major highlight of the budget is the realignment of P255 billion originally set for flood See “House,” A2
BusinessMirror A broader look at today’s business
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PHL FINANCIAL SYSTEM GROWS 6.4% IN 7 MOS www.businessmirror.com.ph
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Wednesday, September 24, 2025 Vol. 20 No. 346
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Cai U. Ordinario @caiordinario
HE total resources of the Philippine Financial System posted a 6.42-percent growth in the period ending July 2025, according to the Bangko Sentral ng Pilipinas (BSP).
Based on BSP data, total resources of banks and non-bank financial institutions (NBFIs) increased to P34.59 trillion in the January to July period 2025 from the P32.5 trillion in the same period last year. The bulk of the resources were
from banks at P28.6 trillion as of July 2025, up by 6.72 percent from the P26.8 trillion in the same period in 2024. Among banks, the largest resources are held by Universal See “PHL,” A2
IBPAP: REVENUE FROM GCCS MAY GROW BY 10% THIS YEAR
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EVENUES generated by Global Capability Centers (GCCs), the type of IT and Business Process Management (IT-BPM) firms with higher valueadding jobs, may grow by 10 percent this year, as it is gaining traction in provincial locations, according to the IT and Business Process Association of the Philippines (IBPAP). At a briefing held on the sidelines of the International IT-BPM Summit 2025 on Tuesday, IBPAP President Jack Madrid said “I don’t have the hard number for 2025 but safe to say that it will be certainly higher than 5 or 6 percent growth for GCCs. So possibly as high as 10 percent.” In his speech, the IBPAP chief said the Philippines, with its talent pool, cost ef-
ficiency, and mature ecosystem, is “wellpositioned” to expand its role as a GCC hub driving enterprise-wide innovation. “We can be both: a world-class outsourcing hub and a GCC hub powering enterprise transformation,” added Madrid. Celeste Ilagan, IBPAP’s Chief Operating Officer, reported that GCCs are now open to looking at places outside of Metro Manila. “We’d like to share that our existing GCCs here have asked the help of IBPAP to look at provincial locations. GCCs are traditionally located in Metro Manila, but they are now more open to looking at places outside of Metro Manila,” Ilagan said. “So I think that’s a good sign that they are expanding and that they recognize See “IBPAP,” A2
FISHERMEN BRACE AS STORMS LINGER Fishermen secure their bancas at Navotas Seaport on Tuesday, September 23, 2025. The state weather bureau PAGASA reported that Supertyphoon Nando (international name: Ragasa) exited the Philippine area of responsibility (PAR) at 4:50 a.m. Tuesday, but warned that a low pressure area east of Visayas has intensified into a tropical depression, spotted 1,090 km east of Eastern Visayas. NONOY LACZA
Pinoys’ credit-driven spending has risks F
INTERNATIONAL COASTAL CLEANUP Over 48,800 volunteers nationwide joined the International Coastal Cleanup 2025, with thousands at SM by the BAY leading the charge for ocean protection. The event brought together families, youth, and organizations, collecting more than 200,000 kilograms of waste—a testament to the power of collective action for an SM Waste-Free Future. This milestone also marks a meaningful part of SM Supermalls’ 40th anniversary, celebrating four decades of purposeful service and a steadfast commitment to sustainability. SM SUPERMALLS
ILIPINOS swiping their credit cards and obtaining loans against their salaries are helping boost consumption spending in the country but these are deemed “unhealthy” practices, according to ANZ Research. In its quarterly brief, ANZ Research noted that domestic demand has been weak in the region, except for the Philippines which is seeing an uptick in private consumption as well as inflow of new consumption. ANZ Research said private consumption in the country, however, was driven by credit card spending and loans against salaries. These borrowings were not being spent on asset creation. “Growth in borrowings for asset creation [that is, mortgages] has been relatively muted, underscor-
ing household concerns over income prospects. This pattern of spending is unhealthy,” ANZ Research said. The Bangko Sentral ng Pilipinas (BSP) reported that consumer loans to residents—which include credit card, motor vehicle, and generalpurpose salary loans—grew by 23.6 percent from 24 percent. The data showed salary-based General-Purpose Consumption Loans grew 6.4 percent in July 2025, albeit a slower pace compared to the 8.3 percent posted in June 2025. ANZ Research noted that the slowdown in consumption in countries in the region, except for the Philippines, has led to the weakness in GDP growth in the region. “As we have stressed in the past, the post-pandemic nature of job creation has been concentrated in low-paying jobs in
segments like food and accommodation, which in turn has impacted consumption,” ANZ Research also stated. Apart from this, the Philippines is facing downside risks that could prevent the country from posting faster economic growth. ANZ Research noted that countries like the Philippines and Malaysia are facing tighter fiscal policies. This is in light of efforts to reduce the budget deficit this year. The research firm also expects monetary policy easing to be less effective in boosting consumption, given that only one more rate cut is expected in the Philippines this year. “The efficacy of monetary policy easing seems limited. The hitherto easing is more likely to have eased debt servicing burdens than augment credit. Other than the Philippines and
Vietnam, credit growth has softened in the region,” ANZ Research said. The research firm also noted that the Philippines continues to record a significant current account deficit of more than 2.5 percent of GDP. This, ANZ Research said, is the reason it continues monitoring the country’s current account deficit more closely.
Growth goals
EARLIER, the BSP said the national government’s growth targets may not be met next year as uncertainties caused by higher US tariffs are bound to dampen investor demand. In its latest Monetary Policy Report, the BSP said the low end of the Development Budget Coordination Committee (DBCC) growth target See “Pinoys’,” A2
PESO EXCHANGE RATES n US 57.1220 n JAPAN 0.3867 n UK 77.2175 n HK 7.3516 n CHINA 8.0298 n SINGAPORE 44.5639 n AUSTRALIA 37.6720 n EU 67.4097 n KOREA 0.0411 n SAUDI ARABIA 15.2362 Source: BSP (September 23, 2025)