The Philippine government is stepping up interventions to prevent 6.5 million citizens who recently escaped poverty from slipping back into financial hardship, while simultaneously strengthening the middle class, according to Executive Secretary Ralph Recto.
Recto stated that the administration’s directive focuses on safeguarding economic gains following a drop in national poverty incidence from 15.5% in 2023 to 9.7% in 2025.
The progress reduced the number of Filipinos living in poverty from 17.5 million to 11 million, achieving single-digit poverty levels three years ahead of the government’s original 2028 target.
“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,” Recto said.
However, Recto emphasized that the latest statistics should mark a starting point for further economic resilience rather than a reason for complacency.
“Ang susunod nating hamon ay siguraduhing tuloy-tuloy ang pag-angat nila,” Recto said.
“Hindi na muling babalik sa kahirapan ang mga nakaahon na, at dadami ang makakaahon pa. At mas protektahan pa natin ang ating middle class,” he added.
To counter emerging risks such as Middle East geopolitical tensions and climate-driven disruptions—which threaten food, energy, and transportation costs—the government is accelerating major infrastructure projects designed to generate local jobs, lower logistics expenses, and attract investment.
Legislative and policy proposals are also underway to bolster household purchasing power. These include raising the annual personal income tax exemption to ₱350,000—which could yield up to ₱17,500 in annual savings per worker—exempting small enterprises from the Minimum Corporate Income Tax, granting a general tax amnesty, and scrapping the travel tax.
On energy, Malacañang is pushing for amendments to the Electric Power Industry Reform Act (EPIRA) to prevent utilities from passing system loss charges to consumers, alongside the proposed Sariling Kuryente Act to make residential solar systems more accessible.
These efforts complement targeted social assistance programs, including the Expanded UPLIFT program covering 7.5 million families and the Bawat Bayan Makikinabang Rice Program serving 8 million households, alongside strategic investments in digital infrastructure and artificial intelligence.