Ahead of President Ferdinand Marcos Jr.'s fifth State of the Nation Address (SONA), economists are urging the administration to concentrate on optimizing public funds instead of unveiling a new array of programs. With only two years remaining in his term, the President faces pressure to outline a clear economic legacy.
The Importance of Efficient Spending
The goal is not simply to spend more or spend less but to spend smarter, faster and cleaner to sustain growth, create jobs, and strengthen public trust.
Jonathan Ravelas, Senior Adviser at Reyes Tacandong & Co.
Economists argue that the upcoming SONA offers a crucial chance to present a strategy for more effective public spending amid economic challenges, including slowing global growth and fiscal constraints. They advocate for a focus on executing existing projects to ensure economic benefits.
Ravelas notes that recent issues, such as the substandard flood control projects leading to an economic slowdown, highlight the need for the government to balance anti-corruption efforts with the need for ongoing economic development. GDP growth fell to 3.0 percent in the fourth quarter of 2025 due to these challenges.
According to Ravelas, past administrations have shown that addressing corruption should not halt spending. He calls for improved monitoring and transparency to ensure that funds are allocated to viable projects.
Long-Term Industrial Policy Needed
Experts like Robert Dan Roces from SM Investments Corp. emphasize the need for a long-term industrial policy that supports broader economic transformation. He believes that smarter spending can enhance the country’s competitive edge in global markets.
Rocess advocates for public investments that foster domestic supply chains, boost manufacturing, and create quality jobs. He stresses that the next two years should focus on sustainable growth rather than consumption-driven strategies.
A Roadmap for Execution
Union Bank of the Philippines chief economist Ruben Carlo Asuncion echoes these sentiments, calling for a clear execution roadmap. He highlights the importance of focusing on food security, infrastructure, and energy security in government policies.
Asuncion points out that economic growth should translate into tangible benefits for everyday Filipinos, not just impressive statistics. The upcoming SONA should reflect a commitment to improving the quality of life for all citizens.