IJE Software logoIJEsoft
ServicesPortfolioPricingAboutCase StudyStackNewsBlogPartnerPH NewsMarketsContactGet in touch
← Back to Philippines Business News
Manila Times Business

DBM: P9.75B released for free college program

THE Department of Budget and Management (DBM) has released P9.753 billion to the Commission on Higher Education (CHED) to cover funding deficiencies in the Free Higher Education Program (FHEP) of 108 state universities and colleges (SUCs). The budget release reinforced the Marcos administration’s commitment to sustain access to quality tertiary education, the DBM said. The amount covered academic years 2022–2023, 2023–2024, and 2024–2025. DBM Acting Secretary Kim Robert D

Context & Analysis

The release is less a one-time budget item than a signal of how the state’s free college scheme has strained university cash flow. State universities and colleges are expected to deliver tuition-free education while also maintaining campuses, paying faculty, and managing day-to-day operations. When government allocations arrive late or fall short, those institutions can face pressure on payroll, procurement, and vendor payments, even if students do not directly see the gap. For that reason, the timing of a multi-year deficiency release matters as much as the amount.

For businesses connected to higher education, the effect is indirect but real. Universities are customers for utilities, transport, food services, printing, equipment, and local contractors. Prompt funding can help stabilize demand among small suppliers that depend on campus contracts. It also supports a pipeline of graduates who may enter technical, clerical, professional, or managerial roles over time. In a labor market where employers often complain about skills gaps, expanding access to state tertiary education is part of the broader workforce strategy.

The fiscal angle deserves attention. Free tuition sounds costless to students, but it shifts the financial burden from households to the national treasury and state universities. The program’s credibility depends on consistent budget execution, transparent monitoring, and enough administrative capacity to spend funds without delays or waste. If future releases continue to catch up with past gaps, it may suggest that initial planning underestimated enrollment, unit costs, or inflation in operating expenses.

What to watch is whether the money reaches campuses quickly and is used for current operations rather than clearing old obligations alone. Investors and business owners should also monitor whether enrollment growth, campus capacity, and graduate employability keep pace with public spending. The program’s success will be measured not only by more students entering college, but by whether they finish degrees, gain skills employers value, and contribute to a more productive economy.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: manilatimes.net

More from Manila Times Business

TMGM Named Official Financial Online Trading Sponsor of BIGBANG 2026-2027 WORLD TOUR in Sydney

2h ago

Medeo Introduces Creative OS, Taking AI Video From Trend Discovery to Monetization in One Continuous Workflow

2h ago

J&T Express Average Daily Parcel Volume Reaches 104.2 Million in Q3 2026; Exceeds 100 Million for Second Consecutive Quarter

2h ago

IBM Study: Eight in Ten EMEA Enterprises Escalate AI Incidents to Board or C-Suite as AI Agents Test Governance

2h ago

Your Daily Briefing

AI business companion — delivered every morning

Markets, PH news, financial insights, and devotionals — curated by AI and sent at 7 AM PHT. Pick your topics below.

Devotionals
Blog Topics
HR & Workforce
Real Estate & Property
News & Markets

1 topic selected