The Philippines must train more workers while its labor force remains large, Technical Education and Skills Development Authority (TESDA) Secretary Kiko Benitez told senators Tuesday, warning that the country risks losing its demographic advantage if it fails to expand access to technical-vocational education.
During the Senate finance subcommittee hearing on TESDA’s proposed 2027 budget, Benitez said the working-age population is expected to peak and decline sooner, making upskilling crucial as new technologies reshape the economy.
“We need to make sure that we maximize and harness the demographic dividend as the Philippines is growing old before becoming rich,” Benitez said.
He said TESDA has to future-proof Filipino workers as artificial intelligence, new technologies, and innovative learning systems transform about 25 percent of jobs.
Benitez said TESDA received its highest budget on record in 2026, the same year the country’s education spending reached 4.4 percent of gross domestic product, meeting the UNESCO benchmark.
Despite this, he said, TESDA’s share remained small, accounting for only about 2 percent of the education budget even if its potential clients cover a much larger portion of the population.
Benitez said the country has about 74 million to 75 million working-age Filipinos, while TESDA’s 2026 scholarship funds can support only about 650,000 beneficiaries.
He said the technical-vocational education and training network can absorb up to 1.5 million face-to-face trainees yearly through private and public training institutions.
TESDA currently works with 4,715 private technical-vocational institutions, 178 TESDA training institutions, and 271 public providers under local universities and colleges, state universities and colleges, and local government units.
Benitez said scholarship funds are being steered toward priority sectors under the National Technical Education and Skills Development Plan, including tourism, manufacturing, construction, information technology-business process management, and agriculture.
TESDA is also scaling AI-related training for BPO and digital workers, with 34,766 beneficiaries identified for institution-based AI and data courses and 10,000 BPO workers undergoing enterprise-based upskilling.
Benitez said the agency has registered 880 micro-credential courses since March 2025, including 133 on AI and digital skills.
For 2027, Benitez said TESDA originally proposed almost PHP39 billion but received PHP20.9 billion under the National Expenditure Program, about 20 percent lower than its 2026 allocation and 46.8 percent below its proposal.
“A higher budget is key to sustaining TESDA’s momentum,” he said.
TESDA is seeking an additional PHP5.7 billion to support 162,656 more beneficiaries, expand higher-level qualifications, train senior high school Tech-Pro teachers, support barangay-based health and enterprise training, and host seven skills competitions under WorldSkills Asia 2027.
Senator Erwin Tulfo, however, questioned TESDA’s fund use, citing budget research showing a 68 percent obligation rate and 45.2 percent disbursement rate in 2025.
“Maybe because your utilization rate is low for 2025 and 2026,” Tulfo told Benitez, saying the government may have cut the agency’s proposed allocation because it appeared slow in spending funds.
Benitez acknowledged that disbursements were “much lower than they should be” but said TESDA usually catches up toward November or December due to cash release timing and school-year-based program rollout.
He said obligation delays are also caused by SARO (Special Allotment Release Order) releases, school readiness, internal processing gaps, and the need to identify specific programs.
Tulfo also pressed TESDA on Commission on Audit observations, including uncorrected accounting errors and omissions, scholarship deficiencies, and doubtful tuition repayments under the UAQTEA (Universal Access to Quality Tertiary Education Act) diploma program.
COA representative Aldrin Cerrado said TESDA had submitted an Agency Action Plan and Status of Implementation, but validation of the agency’s actions was still ongoing.
Cerrado said COA had recommended changes in the treatment of funds downloaded to provincial and district offices, noting that many of these offices have no accountants.
Tulfo said the Senate should carefully weigh whether to increase or reduce TESDA’s budget if audit issues are not fully explained.
Benitez said TESDA scholarship packages include tuition, allowances, and insurance because they are designed for workforce development and are approved by the tripartite TESDA Board. (PNA)
