With the country’s priorities for the next fiscal year being in education, health, social protection, food security, infrastructure, jobs, and disaster resilience.
On Monday, August 10, the Department of Budget and Management (DBM) formally submitted to President Ferdinand Marcos, Jr. at Malacañan Palace the proposed national budget for Fiscal Year (FY) 2027.
With a total of P7.200 trillion, it is equivalent to around 21.7 percent of gross domestic product (GDP) and is six percent higher than the FY 2026 budget, as per the DBM.
“A significant portion of the increase reflects mandatory funding requirements and existing government commitments, including the higher National Tax Allotment (NTA) for local government units, the fourth tranche of salary adjustments for civilian government employees under Executive Order No. 64, corresponding salary adjustments for military and uniformed personnel, and other fiscal obligations,” the department added.
Anchored on the theme “People-Centered Growth for an Inclusive and Resilient Future,” the President noted that it is a “strategic investment” for the country’s future.
“Our national budget serves as our moral and economic compass. It must always point toward making life better for our people. This reflects our unwavering commitment to building a resilient, inclusive, and prosperous nation. More than a financial plan, it is a strategic investment in the Filipino people and in our country’s future,” President Marcos said in his Budget Message.
The Chief Executive also said that it translates the administration’s priorities into “concrete action, ensuring that every public resource contributes to stronger institutions, greater economic opportunities, and a better quality of life for every Filipino.“
For his part, DBM Acting Secretary Kim De Leon noted, “We crafted a budget that prioritizes education, health, social protection, food security, infrastructure, digitalization, and disaster resilience, while remaining consistent with fiscal responsibility.“
He also emphasized that the goal is to “spend strategically,” where public funds can “create the greatest and most lasting impact for every Filipino.”
ALLOCATION OF FUNDS
The DBM said the Social Services has been given the largest share of the proposed budget at P2.456 trillion, with substantial investments made into education, healthcare, social protection, employment, housing, and other related programs.
Basic Education, through the Department of Education (DepEd), will still receive the largest allocation among departments at P976 billion.
The DBM also noted that the consolidated health sector budget reached P1.06 trillion, bringing the health-to-GDP ratio to 3.19 percent, from 2.68 percent in the current year.
“The higher allocation reinforces government efforts to improve access to hospitals, medicines, health facilities, financial assistance, and other essential health services,” it said.
Meanwhile, Economic Services was given a total of P1.833 trillion for infrastructure, agriculture, transportation, water resources development, and other related programs.
Infrastructure investment under the big-ticket Build Better More Program, meanwhile, is proposed at P1.467 trillion and will go to the development of roads, bridges, railways, transportation systems, and water infrastructure, among others.
Here are the top sectors by allocation.
- Education (DepEd) – P976 billion
- Public Works (DPWH) – P644.0 billion
- Health (DOH, Specialty Hospitals, and PhilHealth) – P353.8 billion
- Interior and Local Government (DILG) – P332.5 billion
- National Defense (DND) – P328.8 billion
- Transportation (DOTr, PNR, and LRTA) – P302.2 billion
- Agriculture (DA, DAR, NIA, NDA, NFA, NTA, PCA, PCIC, PFDA, PRRI, SRA) – P261.7 billion
- Social Welfare (DSWD) – P241.6 billion
- Higher Education (SUCs and CHED) – P176.5 billion
- Judiciary – P86.3 billion
Meanwhile, the Hudget Department also said that Unprogrammed Appropriations (UA) kept at a historic low at P111.984 billion, yje lowest since 2019 and is only 1.6% of the Total Expenditure Program—the lowest ratio since 1991.
While these are “unprogrammed,” the DBM said the purpose has beem identified such as restoring the fund balance remitted by the Philippine Deposit Insurance Corporation (PDIC) in 2024 and to provide funding cover for Foreign-Assisted Projects, and are “subject to the stringent conditions prescribed by law.”
TURNOVER TO HREP, SENATE
On Tuesday, August 11, the DBM formally turned over the proposal to lawmakers in the House of Representatives and Senate, with both houses set to tackle the matter in the coming months to come up with the 2027 General Appropriations Act.
“Ngayong nasa Kongreso na ang panukalang budget, tungkulin nating tiyakin na ang layuning ito ay mananatili hanggang sa huling bersyon ng General Appropriations Bill,” expressed House Speaker Faustino Dy III.
“Sa mga susunod na linggo, magiging masusi ang ating trabaho. Magtatanong tayo. Makikinig tayo. At sisiguraduhin nating malinaw sa publiko ang bawat hakbang ng prosesong ito.”
For his part, Senate President Sherwin Gatchalian said, “Pananatilihin nating bukas sa lahat ang proseso at mapupunta ang pondo sa mga programang tunay na makatutulong sa bawat Pilipino.“
