Philippines raises health budget for first time in four years in 2026 State Budget

The Philippine government has increased its health budget allocation for the first time in four years in the 2026 State Budget, signaling a renewed focus on strengthening the healthcare system.

BMI, a unit of Fitch Solutions, highlighted that the budget revisions reflect a growing priority for healthcare despite limited fiscal resources.

The 2026 budget emphasizes improving health infrastructure and promoting equitable access to quality healthcare across all regions.

BMI revised its compound annual growth rate (CAGR) for government health expenditure to 7.9% for 2024-2029, while private health expenditure CAGR was adjusted to 7.5%.

Total health expenditure is projected to grow at a CAGR of 7.6% over the same period, remaining unchanged from previous estimates.

In 2024, total health spending increased by over 17%, reaching 5.9% of the country's gross domestic product (GDP).

Senator Christopher 'Bong' Go urged policymakers to prioritize health-sector funding as medical costs are projected to rise by 18.3% by end-2025, the fastest in Asia, citing the strain on Filipino households.

Go cited Philippine Statistics Authority data showing per-capita health spending reached ₱12,751 in 2024, up 18% year on year.

He emphasized the need to allocate more resources to programs that directly cut out-of-pocket costs, such as Malasakit Centers, Super Health Centers, and Regional Specialty Centers.

Go highlighted ongoing PhilHealth reforms, including lifting the 45-day hospitalization cap and expanding benefits to include dental and mental health services, outpatient drug coverage, and enhanced Z Packages.