THE National Government will propose a P6.793 trillion budget for fiscal year (FY) 2026, Department of Budget and Management (DBM) Secretary Amenah Pangandaman said Friday, June 27, 2025.
In a press conference following the 191st Development Budget Coordination Committee (DBCC) meeting, Pangandaman, the committee chairperson, said the proposed budget is 7.4 percent higher than the P6.326 trillion budget set for FY 2025, reflecting the government’s commitment to supporting inclusive economic growth while upholding fiscal sustainability.
She said it is equivalent to 22 percent of the gross domestic product.
Pangandaman said the FY 2026 National Budget prioritizes human capital development through investments in quality education, healthcare, and workforce upskilling.
“Complementing these are continued investments in infrastructure and digital transformation, still aligned with the Philippine Development Plan 2023–2028. By building a strong, capable, and future-ready workforce, the budget aims to unlock the country’s full potential and achieve the vision of a thriving Bagong Pilipinas,” Pangandaman said.
“This will be complemented by key reforms that enhance transparency and improve bureaucratic efficiency, such as the New Government Procurement Act and the recently ratified Government Optimization Act, which aim to minimize redundancies, reduce unnecessary delays, and simplify government processes,” she added.
Pangandaman said the budget proposals submitted to the DBM totaled P10.101 trillion but were reduced following a rigorous evaluation process, considering the country’s limited fiscal space and the government’s commitment to gradually reducing the fiscal deficit over the medium term.
She said the focus was on prioritizing programs and projects that deliver measurable impact, aligned with the administration’s goals.
“We also carefully evaluated agencies’ absorptive capacity to ensure effective utilization of funds,” Pangandaman said.
The proposed budget is expected to be submitted to Congress before the fourth State of the Nation Address (Sona) of President Ferdinand “Bongbong” Marcos Jr. on July 28, 2025. (TPM/SunStar Philippines)