MANILA, Philippines — The Department of Budget and Management (DBM) has initiated the 2026 budgeting process after it asked government agencies to start preparing their proposals for next year’s projected record-high budget of almost P6.8 trillion.
Budget Secretary Amenah Pangandaman issued National Budget Memorandum 15 containing the budget call for 2026, including the fiscal year’s priorities.
Under the state fiscal program, the expenditure program for 2026 is projected at P6.793 trillion, more than seven percent higher than the approved P6.326 trillion appropriation this year.
“The proposed national budget and its priorities shall be anchored on the national government’s commitment to the achievement of the PDP (Philippine Development Plant) 2023-2028, which is aligned with objectives of the 2030 Agenda for Sustainable Development and the AmBisyon Natin 2040,” Pangandaman said.
“With a few years remaining until the 2030 Agenda, there is a need to accelerate the progress or reverse the negative trends to achieve the global goals of establishing a transformative vision toward economic, social and environmental sustainability,” Pangandaman added.
The 2026 budget would focus on key priorities that include managing the lingering effects of high food prices and safeguarding the purchasing power of the Filipino people.
Next year’s budget would also continue to support infrastructure investments and sustain the government’s efforts to digitize public financial management to boost bureaucratic efficiency and drive transparent service delivery, Pangandaman said.
Lastly, the budget aims to create a “more” inclusive and “balanced” development landscape nationwide by “striking a balance” on the geographical budgetary needs of rural or urban areas in the regions, she added.
The budget chief said the allocation of the 2026 budget among government agencies would be “optimized” in consideration of the impact of the country’s debt burden and competing demands of state agencies.
The government agencies would be evaluated based on how they utilized their funds this year as well as the implementation progress of their programs and projects, Pangandaman said.
The Development Budget Coordination Committee (DBCC) projected that state revenues in 2026 would reach P5.063 trillion or about 16.2 percent of the country’s GDP.
Meanwhile, government disbursements next year are seen to hit P6.54 trillion, resulting in a state budget deficit of about P1.476 trillion, according to the DBCC.
The DBCC estimated that the country’s GDP would grow between six and eight percent from 2026 to 2028.