Metro Manila, Philippines – Malacañang said the Philippines will evaluate its defense spending based on national needs and fiscal capacity, following a call from US War Secretary Pete Hegseth for allies to increase military budgets.
During a press briefing, Commuinications Undersecretary Claire Castro read the statement of Budget Secretary Kim Robert de Leon, saying that the current defense budget is at ₱423.7 billion, or about 1.37 percent of gross domestic product (GDP), which measures the country’s economic output in a given year.
“For the succeeding years, we will evaluate based on actual need and our emerging fiscal space,” Castro said, citing information from economic managers.
Castro noted that while the Philippines’ defense spending is significantly lower than the 3.5% of GDP being pushed by the US, the government must balance military investments with other development priorities.
“Our defense budget as a proportion of GDP is significantly lower than the 3.5% demanded by the US for its allies, but we are a low-income country that has so many other development needs,” she added, quoting Socio-Planning and Economic Secretary Arsenio Balisacan.
Hegseth made the proposal during the recent Shangri-La Dialogue in Singapore, where he urged Indo-Pacific allies to boost defense spending amid growing security challenges in the region.
He emphasized the need for stronger military capabilities, arguing that “rules-based order” must be backed by “hard power,” and called for more investments in ships, submarines, and overall combat capability.
The US defense chief also reassured allies that Washington remains committed to the Indo-Pacific, even as it manages other global obligations, including tensions in the Middle East.
Malacañang said the country is in a “catch-up mode” in terms of defense modernization, as it continues to upgrade military capabilities while addressing broader economic and social needs.
