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Business groups push 4% of GDP as permanent minimum for education spending
Business groups push 4% of GDP as permanent minimum for education spending
Some of the country’s most influential business and civil society groups are calling for the institutionalization of a four-percent share of the country’s gross domestic product (GDP) as the minimum allocation for funding the education sector.
In a joint statement last week, the groups said education spending should consistently align with the global benchmark of at least four percent of GDP to ensure sustained investment in the sector that drives the country’s continued growth and global competitiveness.
“Institutionalize the four percent of GDP allocation as the new minimum standard for future education budgets, not a one-time increase,” the groups said.
The statement was issued by Makati Business Club (MBC), Management Association of the Philippines (MAP), Philippine Chamber of Commerce and Industry (PCCI), Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. (FFCCCII), Philippine Business for Education (PBEd), GenSan Chamber of Commerce, Far Eastern University (FEU), Phinma Education Holdings Inc., Philippine Business for Social Progress (PBSP), and the Private Sector Jobs and Skills Corp. (PCORP).
The groups issued their call after the 2027 budget for the education sector, which was proposed at ₱1.314 trillion, had a slightly lower share of 3.95 percent of the country’s GDP.
The Philippines managed to exceed the benchmark this year, with the education budget reaching ₱1.345 trillion, which accounts for around 4.36 percent of GDP.
The groups said education spending should remain consistent with the National Education and Workforce Development Plan (NatPlan) developed by the Second Congressional Commission on Education (EDCOM 2), which allows reforms to take root and deliver results.
The main objective of NatPlan is to progressively increase education spending from around 3.9 percent of GDP in 2025 to 5.5 percent by 2035. For 2027, the budget allocation for education is set at 4.29 percent of GDP.
“It is our expectation that education agencies will use these funds for measurable, transparent gains in learning outcomes,” the groups said.
Under the 2027 National Expenditure Program (NEP), basic education under the Department of Education (DepEd) will receive ₱975.96 billion, while the Commission on Higher Education (CHED), alongside state universities and colleges (SUCs), is allocated ₱176.5 billion.
An additional ₱21.2 billion has been earmarked for funding the Technical Education and Skills Development Authority (TESDA).
Meanwhile, business and civil society groups are also pushing the government to prioritize pending legislative measures aimed at pursuing education reforms, such as the creation of the National Coordinating Council for Education to strengthen coordination among agencies.
Other proposed reforms include the modernization of the frameworks of CHED and TESDA, alongside the rationalization of professional regulation laws.
“This will better align education and training with labor market needs and strengthen coordination among agencies toward a unified reform agenda,” the groups said.
Furthermore, the groups are seeking stronger implementation of the Early Childhood Care and Development System Act to address increasing rates of stunting, particularly during the first 1,000 days of a child’s life.
“Now, more than ever, we need to work together—government, industry, and civil society—to sustain the gains we have made and to ensure that every peso invested in education translates into real opportunity for Filipino learners and workers,” they said.