Palace: Gov’t to be deliberate in public spending amid weakening peso

September 3, 2026

By ABOGADO.COM.PH Staff

Malacañang on Thursday assured that the government will be more careful and deliberate in spending public funds as the Philippine peso continues to weaken against the United States dollar.

This was after the peso closed at P 62.565 against the US dollar on Wednesday, its fourth consecutive record-low close.

In a press briefing, Presidential Communications Office Undersecretary and Palace press officer Claire Castro said the government is observing fiscal discipline in response to these economic pressures.

Citing a statement from the Office of the Executive Secretary, she said the peso’s weakness is caused by the US dollar’s broad strength and a rise in global pump prices.

The OES said the Bangko Sentral ng Pilipinas’ rate hike may help keep the peso afloat.

“Moving forward, we expect the BSP to act decisively based on available data and intervene when necessary to reduce exchange rate volatility,” the OES said.

Castro said the government will ensure that public funds are spent on priority projects that deliver strong economic and social benefits.

“Isa po sa nakikita ng administrasyon na maaaring solusyon ay kailangan na gumastos ang gobyerno sa mga tamang proyekto. Hindi dapat masayang ang ating pondo sa kung anu-anumang pagkakagastusan,” she said.

Castro went on: “So, dapat magkaroon ng disiplina kung paano gagastusin ang pondo para maka-improve po ng ekonomiya ng bansa.”

The economic team will discuss if there is a need to cut down on non-essential spending.