The government is set to implement various cash assistance programs worth at least P253 billion to cushion the impact of rising inflation on vulnerable sectors, the Department of Budget and Management (DBM) said on Thursday.
DBM officials announced in a Palace briefing after the Bangko Sentral ng Pilipinas (BSP) projected an inflation rate of between 4 percent and 4.8 percent for July, which could be the highest in nine months.
If the BSP’s forecast comes true, the inflation rate reported by the Philippine Statistics Authority (PSA) on 6 August could exceed the 3.7 percent price increase recorded in June.
Despite a potential increase in the headline inflation rate for July, DBM Principal Economist Joselito Basilio said the country's average inflation for 2024 is still expected to be around 3 to 4 percent.
Basilio added that the macro assumption for 2025 is between 2 to 4 percent.
“The budget is designed to be somewhat inflation-proof,” said DBM Principal Economist Joselito Basilio, explaining that the government has allocated contingencies for inflation in the budget.
However, he acknowledged that certain sectors are more vulnerable to price increases.
Budget Secretary Amenah Pangandaman assured the public that the government has allocated significant funds for cash assistance programs worth P253.3 billion for the National Expenditure Program 2025.
The Department of Social Welfare and Development (DSWD) will receive the lion’s share of the budget with P205.5 billion allocated for programs such as the Pantawid Pamilyang Pilipino Program (4Ps), social pensions, protective services, sustainable livelihood, and the Philippine Food Stamp Program.
The Department of Health (DOH) will also receive P26 billion for medical assistance to indigent patients and P1.25 billion for cancer assistance.
Meanwhile, the Department of Labor and Employment (DOLE) will allocate P14.1 billion for the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) Program
To provide relief to the transport sector, the Department of Transportation will continue its fuel subsidy program with a budget of P2.5 billion.
The Department of Agriculture, on the other hand, has allocated P50 million each for fuel assistance to farmers and fisherfolk.