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Philippine health care faces P95.7 billion cut as Marcos boosts debt, military spending
Marcos also proposes cuts to other vital services in the proposed 2027 national budget, including P68.5 billion in education, P3.95 billion in public housing, P26.5 billion in social welfare
- PUBLISHED: Wed 12 Aug 2026, 11:58 AM
Hundreds of patients line up as early as early as 3am at the Philippine General Hospital (PGH) daily. They brave pre-dawn darkness, early morning chill and mid-morning heat in long queues without guarantee of seeing a doctor due to the high volume of patients.
Registration and queues for walk-ins or same-day processing usually reach their limit before 10am, or as soon as daily slot capacities are met.
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The PGH is the Philippines’ second largest hospital in terms of patient volume. It is also the country’s biggest medical education institution under the University of the Philippines system. This year, it was given an operating budget of P8.096 billion (Dh490 million) that remains inadequate if compared with the number of patients who want to avail of its services.
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Activists and health advocates, however, note President Ferdinand Marcos Jr has other ideas about PGH’s funds and where government funds should be spent. His government formally submitted its national budget request to the House of Representatives on Tuesday, August 11, showing a P805-million (Dh48.78 million) decrease in the hospital’s budget despite repeated requests by UP for additional funds to solve inadequate bed capacity and insufficient allowance for its health employees.
It is not just the PGH that would suffer budget cuts. All 87 Department of Health hospitals throughout the Philippines face diminished funds as the government submitted a P95.7 billion (Dh5.8 billion) reduction in government health spending.
Anti-poor budget
Filipino economist Sonny Africa said Marcos’ proposed budget is heavily into austerity for social services, including health, while biased towards debt servicing and military expenditures.
Funds for other vital social services are also being chopped. Marcos wants the current P1.2685 trillion (Dh76 billion) education budget cut by P68.5 billion (Dh4.15billion) or by 5.3 per cent.
He wants the current P10.65 billion (Dh645 million) public housing budget cut by P3.95 billion (Dh239 million), a whopping 37 per cent.
The President recommends the current P350 billion (Dh21.2million) social welfare budget reduced by P26.5 billion (Dh1.6billion) or 7.6 per cent.
His proposed budget also wants to shrink the current P313.2 billion (Dh18.98 billion) agriculture and agrarian reform budget by P36.6 billion (Dh2.2 billion), an 11.7 per cent cut.
While major social services will get a huge hit, three items in the Marcos administration’s proposed 2027 budget will get the biggest increases: Debt servicing, infrastructure, and military spending.
“Austerity will always hit the poor and vulnerable the most if the government keeps prioritising elite interests over the people's welfare,” underscored Africa, who is also executive director of development and research organisation Ibon Foundation.
'Real priorities'
Bagong Alyansang Makabayan (Bayan), a political and multisectoral alliance in the Philippines, noted Marcos’ proposed budget for next year will “deprive millions of Filipinos a decent future.”
Bayan president Renato Reyes Jr said: “We see what the real priorities of Marcos Jr. He has no program for national industrialisation and genuine land reform and economic self-reliance.”
Reyes noted Marcos asked a P659.3 billion (Dh39.95 billion) increase in 2027 debt service to P2.7 trillion (Dh163 billion) in interest payments and amortisation, a 17.3 per cent increase.
Marcos is also asking for a P28.6 billion (Dh1.73 billion) increase on military spending, bringing next year’s military to budget to P452.4 billion (Dirham 27.4 billion), a 6.8 per cent increase.