THE Department of Budget and Management (DBM) submitted to the House of Representatives on Tuesday, August 11, 2026, the 2027 National Expenditure Program (NEP), which contains the proposed P7.2-trillion national budget for next year.
House Speaker Faustino “Bojie” Dy III formally received the 2027 NEP, assuring that it would undergo rigorous scrutiny to ensure that every peso delivers concrete benefits to the Filipino people.
He said the budget proposal would be evaluated based on three fundamental questions: “Saan mapupunta ang pondo, ano ang konkretong mababago nito, at paano ito mararamdaman ng ordinaryong Pilipino.”
Under the 2027 NEP, the Department of Education (DepEd) remains the largest recipient of the national budget, with a proposed allocation of P976 billion.
The Commission on Higher Education (CHED) and state universities and colleges (SUCs) will receive P176.5 billion.
DBM Acting Secretary Kim de Leon said the allocations are a testament to the government’s commitment to investing in the country’s most valuable resource—the people.
Next to DepEd, the Department of Public Works and Highways (DPWH) has the second-highest budget allocation, with a proposed P644 billion.
The DPWH proposed budget includes P107.4 billion earmarked for flood control projects, either for the maintenance, repair, rehabilitation or improvement of existing projects, or for new projects.
It also includes P19.6 billion in capital outlay for ongoing foreign-assisted flood control projects and P3.41 billion for flood control projects in Metro Manila to be implemented by the Metropolitan Manila Development Authority (MMDA).
“Hindi naman din po natin pwedeng pabayaan 'yung mga naumpisahan na, na mga flood control projects, at mas hindi po magiging maayos 'yung epekto kung mananatiling nakatiwangwang 'yung mga naumpisahan ng mga flood control projects,” de Leon said.
De Leon, however, assured that projects would undergo scrutiny before the release of funds to ensure that no public funds would be put to waste.
For health, the government earmarked P353.8 billion to support hospital operations, health services and major health programs.
Local government units will receive P332.5 billion, while national defense will get P328.8 billion, including funding for military modernization and operations.
The transportation sector, including the Department of Transportation, Philippine National Railways and Light Rail Transit Authority, was allocated P302.2 billion.
Agriculture was allocated P261.7 billion, social welfare P241.6 billion, and the judiciary P86.3 billion.
The 2027 NEP also includes P111.984 billion in Unprogrammed Appropriations (UA), which de Leon said is the lowest level since 2019, representing only 1.6 percent of the Total Expenditure Program (TEP).
“More importantly, the proposed UA is limited to clearly defined and necessary purposes: primarily to restore the fund balance remitted by the Philippine Deposit Insurance Corporation (PDIC) in 2024 and to provide funding cover for Foreign-Assisted Projects, subject to the stringent conditions prescribed by law,” the DBM said.
“This deliberate restraint reflects the Administration’s push for stronger fiscal discipline, greater transparency, and increased predictability in public spending, with more government expenditures placed directly under programmed appropriations that undergo full budget scrutiny rather than relying heavily on standby funding,” it added.
The proposed P7.2-trillion national budget is P407 billion, or 6 percent, higher than the 2026 budget. (TPM/SunStar Philippines)