THE Department of Budget and Management (DBM) said a bill that will set a floor to healthcare spending of 5% of gross domestic product (GDP) is likely to run into fiscal and constitutional hurdles.
Budget Secretary Amenah F. Pangandaman said the DBM supports the intent of House Bill No. 1973, which sets the spending minimum for healthcare, but added: “It is important to note that any increase in funding will depend on several key factors — including our country’s available fiscal space, the nature and readiness of proposed programs and projects, and the government’s overall expenditure priorities,” she told BusinessWorld via Viber.
Ms. Pangandaman said healthcare remains a top priority, and the DBM will continue collaborating with executive and legislative partners to obtain adequate resources for Filipinos.
Budget Undersecretary Goddes Hope O. Libiran added that the proposed allocation, estimated at over P1.3 trillion, could violate constitutional provisions requiring education to receive the largest share of the national budget.
“If that happens, healthcare spending would surpass the education sector, which is prohibited under our Constitution. Education must always be the top budget priority in the National Expenditure Program (NEP) and the General Appropriations Act (GAA),” she said via Viber.
In the 2025 spending plan, education was allocated P1.055 trillion, followed by public works (P1.007 trillion), defense (P315.1 billion), interior and local government (P279.1 billion), and health (P267.8 billion).
John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies said funding healthcare with at least 5% of economic output is “necessary” to build a more resilient and inclusive health system.
“Many economies with stronger health outcomes spend at or above this threshold. However, feasibility will depend on fiscal space, political will, and how efficiently the funds are spent,” he said via Viber.
Mr. Rivera added it should not be an either-or choice between education and healthcare.
“The NG (National Government) can still boost health spending through targeted reforms, better efficiency, and increased absorptive capacity without breaching fiscal or legal thresholds,” he said.
Essential services should be progressively funded in a balanced and sustainable way, Mr. Rivera said.
The P6.326-trillion national budget for 2025 raised concerns about the zero subsidy for the Philippine Health Insurance Corp., casting into doubt the sustainability of universal healthcare programs.
In 2026, Finance Secretary Ralph G. Recto said the government health insurer will be allocated a P53.26-billion subsidy in the National Expenditure Plan, the document prepared by the executive branch that will serve as the basis for the budget bill.
Economic managers have proposed a P6.793-trillion national budget for 2026, up 7.4% from the actual P6.326-trillion budget in 2025. This is equivalent to 22% of GDP.
The DBM projected appropriations of P7.232 trillion in 2027 and P7.702 trillion in 2028. — Aubrey Rose A. Inosante
