Education and infrastructure will get the lion’s share of the proposed P6.793 trillion national budget for 2026, which the Department of Budget and Management forwarded to the House of Representatives on August 12. Next year’s budget, an increase of 7.4% from the enacted 2025 budget, includes allocations of P928.5 billion for education, P881.3 billion for public works, and P320.5 billion for the health sector. Manila gave higher priority to the defence sector this year, giving it the fourth-highest allocation of P299.3 billion, above the interior and local government departments. Lawmakers from the Congress’s lower chamber will scrutinise the expenditure program before crafting a General Appropriations Bill, which will guide government spending for the upcoming year. 

Marcos signs law giving judiciary greater fiscal autonomy

President Ferdinand Marcos Jr., on August 14, signed the Judiciary Fiscal Autonomy Act , giving Philippine courts greater control over their budget and operations. The law mandates that the judiciary’s proposed budget be submitted directly to Congress and included in the national budget as is, with monthly automatic fund releases. It empowers the Chief Justice, with Supreme Court en banc approval, to reallocate funds for urgent needs and creates a Judiciary Trust Fund for court-generated revenues. Quarterly spending reports to the Executive and Legislative branches will be required to ensure transparency and uphold checks and balances.

AI can boost Philippine economy by P1.8 trillion, study says

Artificial intelligence could boost the Philippine economy by up to P1.8 trillion ($31 billion), equivalent to a 7% rise in gross value added, according to a study by Google Philippines and consulting firm Public First. Their 2025 Economic Opportunity Report said AI-driven skills could raise a worker’s productivity by P110,000 ($2,000) annually. Google’s Gabriel Roxas likened AI to adding a new growth engine to the country, with potential benefits in work efficiency, upskilling, and global competitiveness.

E-gambling ban from e-wallets sought

Philippine lawmakers have filed a bill to bar e-wallet apps from promoting or linking to online gambling platforms. House Bill 721 would make it illegal for e-wallet operators to redirect users to betting sites, display gambling ads, or promote wagers on their platforms. Offenders would face fines, with a third violation resulting in permanent loss of licence. The bill’s authors said e-wallets have become gateways to digital casinos and sports betting, raising social and cultural concerns.

Retail t-bonds now available in e-wallet apps

The Philippines’ Bureau of the Treasury has partnered with e-wallet giant GCash to make Retail Treasury Bonds (RTBs) more accessible through its application. The 31st tranche (RTB31), a five-year peso-denominated bond with a 6% interest rate, is open for investments starting at P5,000 until August 15. Powered by the Philippine Digital Asset Exchange and bonds.ph, the platform aims to broaden public participation in low-risk government securities that fund priority projects, with returns guaranteed upon maturity in August 2030.

Tonga became the first Pacific Island country to host a Climate Finance Readiness Writeshop and Validation Exercise (4–7 March 2025), marking a major step in boosting its capacity to access climate finance. Co-hosted by the Pacific Community (SPC) and MEIDECC, the event trained 42 participants from government, civil society, and private sectors on developing quality funding proposals using tools like the Woven Logical Framework and PINT. The programme included a field visit to a mangrove restoration project and concluded with a Validation Exercise refining Tonga’s Climate Change Fund proposal. Lu’isa Tu’iafitu Malolo, MEIDECC’s Climate Change Director, emphasised that the workshop strengthens Tonga’s capacity to develop, implement, and monitor effective climate projects—a model for other Pacific nations.

PM presents Tonga's biggest budget $992.8 million

Tonga’s largest budget yet— $992.8 million for 2025-26 —was presented by Prime Minister Hon. Dr 'Aisake Eke to Parliament on 3 June. This includes $748.9 million in cash and $243.9 million in in-kind aid from development partners. Dr. Eke said the budget aligns with His Majesty’s address, the National Development Summit, and government strategic plans, aiming to address Tonga’s economic and social challenges and enhance prosperity. A $29.1 million deficit is projected, mainly due to infrastructure investments, and will be financed by $30 million in local bonds.

Key priorities include:

Samoa and Tonga ready for clash

Oceania Rugby and the Samoan and Tongan Under-20 teams are set to clash at Apia Park on Saturday , June 7, despite heavy rain from Tropical Disturbance 07F. Oceania Rugby’s Wayne Schuster said preparations are on track and alternative plans are in place if needed. If the match is cancelled, Tonga would be awarded the trophy. The winner qualifies for the World Rugby Under-20 Trophy in Spain. Samoa’s captain, East Timor Xanana Viliamu, said the team is prepared for Tonga’s physicality, having practised against local teams using Tonga’s style. “It’s an honour to lead the team,” Viliamu said.

Pacific Central Bankers and Alliance for Financial Inclusion meet in Tonga

Six Pacific central banks are meeting in Nukuʻalofa, Tonga, this week to discuss how financial inclusion can boost economic resilience and social equity. Prime Minister Hon. ‘Aisake Eke opened the meeting on 3 June 2025, hosted by the Alliance for Financial Inclusion (AFI), with over 70 participants from Fiji, Papua New Guinea, Samoa, Vanuatu, Solomon Islands, and Tonga, plus guest delegates from Seychelles and Kenya. Topics include digital innovation, cross-sector collaboration, data governance, and the launch of Tonga’s Fintech Regulatory Sandbox. Tonga’s Reserve Bank Governor, Tatafu Moeaki, emphasised its role in fostering safe testing of digital financial solutions. On 6 June, PIRI governors will endorse the Nuku’alofa Pledge for inclusive and climate-resilient financial systems.

Seabased secures 10MW wave energy project in Tonga

Seabased has signed an MoU with Tonga and SIDS DOCK to build a 10MW wave energy plant offshore Tonga. The project will start with a 2MW phase, expected to save $2 million, displace 2 million litres of fuel, and power 2,800 homes. The second phase will add 8MW, saving up to $10.5 million and 42 million litres of fuel. The plant aims to meet half of Tonga’s energy needs and cut emissions by 20%. Tonga’s minister, Albert Vaea, emphasised the relief renewable energy could bring to high-cost island economies. Seabased CEO Laurent Albert highlighted additional benefits like desalination and green hydrogen production.