President Carlos P. Garcia's Austerity Program in the Philippines

In October 1962, President Carlos Polistico Garcia of the Philippines initiated what was called the 'Austerity Program'. This program aimed to reduce government spending during a period when the country faced a severe economic crisis due to low rice crop production. The Philippines had been experiencing food shortages since the previous year, which led to riots and protests, prompting the need for urgent measures.

On September 8th, 1963, he announced his plans for this program, but it did not come into effect until February 1st, 1964. At its core, the Austerity Program sought to cut down on unnecessary expenses within the government, focusing particularly on reducing public sector wages. A major concern was how to ensure that a balanced budget would be maintained while considering the limited resources available to the government. It intended to impose temporary wage cuts across all sectors, including the military and civil service, with the exception of essential drugs and medical supplies.

The effects of the Austerity Program were both immediate and far-reaching. For instance, after being implemented, the government collected nearly ₱1 billion more from January to June in 1965 compared to the previous year. However, some felt that the program went too far and caused disruption to daily life, such as the cancellation of monthly bonuses. Despite these challenges, President Garcia believed firmly that the measures were necessary for the country to overcome its economic woes.