NATIONAL BUDGET

MANILA, Philippines – The Development Budget Coordination Committee (DBCC), chaired by Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman, has approved a proposed national budget of PHP 6.793 trillion for Fiscal Year (FY) 2026. This figure represents 22.0 percent of the gross domestic product (GDP) and a 7.4 percent increase from the FY 2025 budget of PHP 6.326 trillion.

Secretary Pangandaman stated during a press conference following the 191st DBCC meeting that the FY 2026 National Budget is “Anchored on the theme, Nurturing Future-Ready Generations to Achieve the Full Potential of the Nation.” She highlighted that the budget prioritizes human capital development through investments in quality education, healthcare, and workforce upskilling. These efforts are complemented by continued investments in the “Build Better More Infrastructure Program” and digital transformation, aligning with the Philippine Development Plan (PDP) 2023–2028.

The proposed budget also integrates measures to enhance climate and disaster resilience, strengthen social protection systems, and deepen the devolution of basic services to local government units.

The Budget Chief noted that while the DBM initially received agency budget proposals totaling PHP10.101 trillion, a rigorous evaluation process was undertaken due to limited fiscal space and the government’s commitment to gradually reduce the fiscal deficit. “With limited resources, we focused on prioritizing programs and projects that deliver measurable impact, aligned with our national goals, and are ready for implementation. We also carefully evaluated agencies’ absorptive capacity to ensure effective utilization of funds,” Secretary Pangandaman explained.

Proposals under the Three-Year Rolling Infrastructure Program (TRIP) and the Program Convergence Budgeting (PCB) framework were also given priority.

Secretary Pangandaman concluded by emphasizing the government’s commitment, through coordinated policy implementation and strategic investments, to “reducing poverty to single-digit levels, creating quality jobs, safeguarding macroeconomic stability, and ultimately achieving our Agenda for Prosperity in the Bagong Pilipinas—even amidst global uncertainties.”

The proposed FY 2026 National Expenditure Program is expected to be submitted to Congress in August.