President Ferdinand Marcos Jr. has announced a comprehensive plan to bolster the economic security of middle-class families in the Philippines. His administration aims to create jobs, increase incomes, and reduce living costs to ensure sustained progress.
Executive Secretary Ralph Recto articulated the President's directive, emphasizing the importance of preventing the 6.5 million Filipinos who recently escaped poverty from falling back into financial hardship. Recto stated, "That is the marching order of the President: Support the middle class and prevent 6.5 million Filipinos from sliding back into the zone of poverty."
Poverty Reduction and Ongoing Challenges
According to the Philippine Statistics Authority, the country's poverty incidence dropped significantly from 15.5 percent in 2023 to 9.7 percent in 2025. While this improvement is noteworthy, Recto cautioned against complacency, citing external factors such as the ongoing Middle East crisis that could affect fuel and food prices.
- Proposed increase in annual personal income tax exemption from P250,000 to P350,000.
- Legislative push to exempt small businesses from the Minimum Corporate Income Tax.
- Proposal for a general tax amnesty and abolition of the travel tax.
As the administration prepares for potential disruptions from climate events like El Niño, Recto reiterated the need for proactive measures to maintain economic stability. He assured citizens that the government is committed to keeping essential goods affordable.