DBM moves to prevent 2026 budget insertions

Marcos OKs P6.793 trillion budget for 2026

MANILA, Philippines — The executive branch is moving to prevent a repeat of controversial insertions by lawmakers in the annual outlay, as President Marcos and the Cabinet yesterday approved a P6.793-trillion National Expenditure Program (NEP) for 2026.

Budget Secretary Amenah Pangandaman called on state agencies to stick to the agreed budget, and not ask for more once Congress deliberates on the 2026 NEP.

In an interview, Pangandaman said agencies and departments must take into consideration that next year’s budget is “very tight,” as she urged them not to demand additional resources from lawmakers when budget hearings commence.

She said doing so risks having insertions in the General Appropriations Act again, similar to what happened to this year’s GAA.

The mangling of the 2025 NEP proposed by the executive has been challenged before the Supreme Court, with certain portions of the GAA deemed to be unconstitutional by the petitioners.

As part of the budget process, agencies undergo hearings at the House of Representatives and Senate where they defend their proposals.

“The priorities in the budget are priorities of the department secretaries. I’m hoping that they won’t ask for more (during hearings),” Pangandaman told The STAR.

“We have a limit. Otherwise, all of their projects would have been given (funding). So, when they ask because they think they need more, the tendency is it will be reduced in other departments,” she said.

Prior to the P6.793-trillion NEP for 2026, the DBM actually received more than P10 trillion in budget submissions. However, the government’s still limited fiscal space will not be able to fund additional programs.

Pangandaman said she has been sitting down with department secretaries to check that they agree with their budget levels and priorities.

“Of course, I understand that it is not always enough. It is really hard. As much as we wanted to add more, our fiscal space can only do so much,” she said.

The government is currently facing a fiscal consolidation that is taking much longer than expected, amid lower revenues and more spending with the budget gap moving further away from pre-COVID levels.

Nonetheless, Pangandaman recognized the power of the purse of the legislative branch.

“I guess, there are (items) that we did not see or include in the priorities that they feel they need to see. Of course, those will also be respected,” she said.

But Pangandaman also warned that any significant insertions will further hurt the fiscal space next year.

“The increase (in the budget) is just a little over seven percent. So, if there’s a little movement there, it will really affect the continuity and sustainability of our projects and programs,” the DBM secretary said.

This year’s budget was faced with constitutional challenges before the Supreme Court. Worst of all, it was dubbed as the most corrupt budget ever following the politicization of social welfare programs.

NEP for education, livelihoods

The 2026 NEP secured the President’s nod during a Cabinet meeting at Malacañang, Presidential Communications Undersecretary Claire Castro said.

“In line with the goal to elevate the level of education in the Philippines and to improve the livelihood of Filipinos, President Ferdinand R. Marcos, Jr. approved the P6.793 trillion proposed budget for next year,” Castro said in a press briefing.

“During the Cabinet meeting at Malacañang this morning, President Marcos emphasized the assurance that the 2026 budget would not be just for economic growth, but for the higher quality of life of each Filipino and the next generations,” she added.

By expense class, maintenance and other operating expenses will get P2.639 trillion to fund the implementation of government programs and projects.

Personnel services expenditures are earmarked P1.908 trillion to fund the salaries and other benefits of government workers, including the requirements for creation and filling of positions.

Lastly, capital outlays will be allocated P1.296 trillion to fund priority infrastructure projects, while financial expenses will be provided P950 billion.

National government agencies will receive P4.305 trillion, while local government units will get P1.35 trillion, excluding locally implemented projects funded through national agencies.

State-run corporations will be allocated P188.3 billion in the form of subsidy or equity support, as well as net lending assistance.

The NEP will be submitted to Congress two weeks after the President’s State of the Nation Address. Should the schedule proceed, this will still be well ahead of the constitutional deadline for the submission of budget 30 days after the SONA.
According to the Department of Budget and Management, the proposed national budget for 2026 is equivalent to 22 percent of the country’s gross domestic product and higher by 7.4 percent from this year’s outlay of P6.326 trillion.

Appropriations committee must be independent

In a related development, Navotas Rep. Toby Tiangco emphasized yesterday the need for an independent House committee on appropriations, one not beholden to any political faction and is guided solely by the public’s welfare.

Tiangco said he is ready to take on the challenge of chairing the appropriations committee in the 20th Congress, if his colleagues support reforming the budget process and preventing the irregularities that marred past deliberations.

“It depends. I’m willing to accept the chairmanship of the Appropriations Committee if my colleagues support the need to address and prevent a repeat of the issues that surrounded the 2025 budget,” Tiangco said in a press statement.

Various critics and watchdog groups raised concerns over the 2025 national budget, claiming it was riddled with manipulation and questionable insertions. They alleged that only a few figures within the House leadership exercised control over the allocation process. Even the President vetoed several items in the budget.

Finishing touches on SONA

With less than two weeks to go before the actual day, officials of the Office of the President, House of Representatives and Senate of the Philippines met at Malacañang Palace yesterday to put the finishing touches on Marcos’ fourth SONA on July 28, House secretary general Reginald Velasco said yesterday.

Velasco described this year’s SONA as another opportunity to “raise the bar even higher,” recalling the success of previous SONAs.

“We have a great challenge ahead of us. Over the years, we have consistently set a high standard through the effective conduct of past SONAs,” Velasco said in a statement.

Velasco said that topics discussed in the meeting ranged from security plans, traffic rerouting to contingency measures.

Sofronio Vasquez to sing anthem

For this year, singing the Philippine national anthem will be “The Voice” US season 26 winner Sofronio Vasquez.

“Vasquez, a multi-awarded singer known for his powerful renditions of patriotic and classical pieces, reflects the administration’s intent to blend tradition and excellence in this year’s SONA ceremony,” the Presidential Communications Office (PCO) said in a statement.

“His participation is seen as a tribute to Filipino talent and national pride,” the PCO said.

Marcos preparing his own SONA

Castro said the President is preparing his annual address himself.

“He himself is studying what he will report in his SONA,” she said at a press briefing.

Asked whether Marcos is likely to discuss online gambling in his address, Castro said such decisions need to be studied.

“Decisions like this are really being studied to see if they will affect the economy, affect the people, and we cannot rush into this,” she said.

Sen. Raffy Tulfo earlier said he hopes the President will include in his SONA his stance on online gambling.

Tulfo called for a total ban on online gambling.

The Philippine Amusement and Gaming Corp. collected around P50 billion from online gaming operations in 2024, according to PAGCOR chairman Alejandro Tengco.

Tengco said half of the revenue directly funds social services, such as the Universal Health Care Act, Philippine Health Insurance Corp., Philippine Sports Commission and Dangerous Drugs Board. — Helen Flores, Jose Rodel Clapano