The Philippine economy, which grew faster than expected at 7.6 percent in the third quarter of the year, would boost the Marcos administration's planned expansion of program subsidies or "ayuda."

The remarkable growth marked President Ferdinand Marcos Jr.'s first full quarter in office since he took over the seat in Malacañang on 30 June.

Marikina Rep. Stella Quimbo welcomes the development, saying the planned increase in subsidy would fuel the country's economic turnaround.

"Despite high inflation in the third quarter of 2022, we saw growth in output in the same quarter," Quimbo said on Sunday.

In terms of supply, Quimbo underscored that all sectors grew, and the domestic demand remained robust.

Subsidies expansion

Meanwhile, Quimbo, vice chairperson of the House Appropriations Committee, said that domestic output expansion is the best defense against inflation at this time.

The country's quickening high inflation rate, which spiked at its fastest pace in over 14 years in October at 7.7 percent, was the highest since December 2008.

Earlier, the Chief Executive eyed continuing the government's subsidies in the most vulnerable sectors through cash transfers and fuel discounts in a bid to support Filipinos amid surging commodity prices brought about by global inflation.

The House of Representatives has vowed support in terms of legislation.

"The government has been providing fuel and fertilizer subsidies to boost agricultural production. We should consider expanding this program to better support our producers," Quimbo proposed.

The expansion proposal would result in the provision of P206.50 billion worth of subsidies and cash aid under the proposed P5.268 trillion national budget for 2023.

The Department of Social Welfare and Development will get a big chunk of the budget with P165.40 billion to be allocated to implement various social assistance programs.

Other agencies like the Department of Health, Department of Labor and Employment and Development of Agriculture will also get their slice of the ayuda pie.

Assisting the affected sectors, however, is a benefit not just for the vulnerable but also a way for the government to boost spending.

According to the legislator, this allows for greater consumption and well-being, mainly when targeted to the most vulnerable sectors.