Makabayan Bloc Proposes Five Percent GDP Health Budget
In a bold move to improve public health, Makabayan bloc lawmakers have filed a bill urging the national government to allocate at least five percent of the country’s gross domestic product to health services. Representatives Antonio Tinio of ACT Teachers party-list and Renee Co of Kabataan party-list spearheaded the proposal, highlighting the urgent need for increased health funding.
Currently, the government dedicates only about 1.3 percent of the GDP, or roughly P270 billion, to health services. This starkly contrasts with the World Health Organization’s recommendation of a minimum five percent allocation. If passed, House Bill No. 1973, titled the Automatic Appropriation for Public Health Services Act, could boost the health budget to around P1.3 trillion annually.
Addressing the Current Shortfall
Tinio explained that the 2025 health budget of P270 billion is actually P30 billion less than the previous year, reflecting a budget cut despite growing healthcare demands. “Currently, like for the 2025 budget, only 1.3 percent of GDP was allocated to health… which in fact is lower by P30 billion compared to the previous year,” he said. The bill aims to mandate that the health budget never falls below five percent of the GDP, ensuring consistent and sufficient funding.
Under the proposed legislation, the government would be required to allocate the equivalent of five percent of the previous year’s GDP specifically for public health services. This would amend Section 31 of Presidential Decree No. 1177, which governs automatic appropriations.
Funding Priorities and Challenges
Tinio acknowledged that the increase to P1.3 trillion would be significant, as it represents about one-fifth of the proposed 2026 national budget of P6.793 trillion. However, he stressed the importance of prioritizing health, comparing it to the education budget. “Will we question if the budget for education is too big? Let’s say, P1 trillion, that’s for education. Will we ask why it is too big? No,” he said. “Health and education are equally important.”
Funding for this increase would come from the general fund, which currently supports infrastructure projects. Tinio pointed out that infrastructure budgets, such as the P1.3 trillion allocation and at least P300 billion for flood control, are more vulnerable to corruption. “There are a lot of funds available, but this is more of a matter of proper prioritization and fighting corruption,” he explained.
Healthcare System Struggles Amid Low Funding
The low health budget has led to various problems in the healthcare system. Recently, lawmakers raised concerns over unpaid claims to private hospitals, causing some to stop accepting guarantee letters (GLs) from indigent patients. GLs serve as promissory notes ensuring payment for medical services.
The Private Hospitals Association of the Philippines Inc. (PHAPI) reportedly faces delayed payments, with some hospitals in Batangas still owed around P450 million under the Medical Assistance for Indigent and Financially Incapacitated Patients (MAIFIP) program. Lawmakers have called for an investigation, noting that the 2025 General Appropriations Act allocated P41.15 billion for this program.
The proposed bill seeks to ensure the government commits adequate resources to health services, improving access and quality for Filipinos nationwide.
For more news and updates on health services budget, visit Filipinokami.com.
