Marcos approves P6.793 trillion proposed budget for 2026

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July 15, 2025 | 3:22pm

MANILA, Philippines — President Ferdinand Marcos Jr. approved a proposed P6.793 trillion budget for 2026, according to the Palace on Tuesday, July 15. 

This is an increase from the approved budget in 2025, which was finalized at P6.352 trillion after a heavily contentious budget deliberation in Congress. 

“Sa layunin na mapataas ang kalidad ng edukasyon sa Pilipinas at pagaanin ang pamumuhay ng Pilipino, inaprubahan ni President Ferdinand R. Marcos Jr. ang P6.793 trillion proposed budget para sa susunod na taon,” Palace Press Officer Claire Castro said in a press briefing. 

(In order to increase the quality of education in the Philippines and improve the lives of Filipinos, President Ferdinand R. Marcos Jr. approved a P6.793 trillion proposed budget for the next year.)      

In a separate statement, the Department of Budget and Management (DBM) said that the proposed 2026 budget, known officially as the National Expenditure Program (NEP), will focus on matters of social welfare, job creation and peace and development. 

Initial proposals for the budget reached up to P10 trillion, but the DBM had to cut this down due to a limited fiscal space. The DBM also wants to reduce the national government’s deficit from 5.5% of the gross domestic product in 2025 to 4.3% by 2028. 

Of the P6.793 trillion national budget, P2.639 trillion is allocated for Maintenance and Other Operating Expenses, while P1.908 trillion is earmarked for Personnel Services, funds dedicated to government employee salaries.

A total of P1.296 trillion is allocated for Capital Outlays to fund infrastructure projects, while P950 billion is set aside for Financial Expenses.

National government agencies have a proposed budget of P4.305 trillion, comprising 63.4% of the proposed budget. Local government units would get P1.350 trillion. 

Meanwhile, Government-Owned or -Controlled Corporations get subsidies amounting to P188.3 billion. 

Marcos will submit the budget to Congress within 30 days after the State of the Nation Address. 

The 2026 budget comes on the heels of the most controversial budget deliberations during the Marcos administration. 

Last year, the 2025 budget deliberations saw Philhealth being stripped of its subsidy due to the alleged hoarding of excess funds, as well as the alleged prioritization of infrastructure over education. All these matters have since been brought before the Supreme Court.