The Marcos administration, through the Department of Budget and Management (DBM), has already set its national budget priorities for 2026 based on the government’s medium-term development plan.

Given the country’s “limited fiscal space,” new budget proposals will be evaluated based on their alignment with the Marcos administration’s priorities, readiness for implementation, and the absorptive capacity of implementing agencies.

Based on the 2026 budget priorities framework briefer published early June, infrastructure development is the government’s first priority in the list. It includes investments in active transport, integrated water resources, agriculture and healthcare facilities, and digital connectivity.

This will support the ambitious “Build Better More” program, which aims to roll out the 207 big-ticket infrastructure flagship projects (IFPs) worth ₱10.1 trillion in the government’s pipeline.

Human capital development is the second budget priority. The government aims to expand access to quality healthcare and education, strengthen the Pantawid Pamilyang Pilipino Program (4Ps), and generate more job opportunities through workforce upskilling and retraining.

To boost food and water security as the third priority, the government plans to build and upgrade modern postharvest facilities and invest in multipurpose projects that combine irrigation, flood control, and water supply systems.

Fourth on the list is industry development, which aims to boost domestic manufacturing, expand Negosyo Centers to more local government units (LGUs), upgrade One Town, One Product (OTOP) stores into multifunctional hubs, and promote diverse tourism through the Philippine Experience Program.

Fifth is research and development (R&D) and innovation efforts, which focus on supporting startup incubation programs, expanding scholarships in key innovation fields, and strengthening collaboration among the government, academe, and industry.

Digitalization is also in the priority list, aiming to invest in technologies that streamline government services and ensure integration and interoperability across national government digital systems.

Lastly, environmental, climate, and disaster resilience made it to the cut of 2026 budget priorities. It would cover setting up marine research stations, enhancing disaster preparedness through capacity-building, and integrating the Department of Social Welfare and Development’s (DSWD) adaptive and shock-responsive social protection system into broader government response mechanisms.

Sought for comment on the progress of the 2026 budget preparation, DBM Secretary Amenah Pangandaman told Manila Bulletin that updates will be made available soon.

The Cabinet-level Development Budget Coordination Committee (DBCC) has yet to set a ceiling for next year’s spending plan despite budget season fast-approaching as the 20th Congress opens in July.

Details on this matter could be available on Monday, June 22, as the continuation of the DBCC meeting will be held on that date, disclosed Pangandaman, who chairs the interagency committee.

Based on the budget cycle, technical budget hearings are being conducted during the months of June and July, and the Tier 2 proposals of government agencies are being reviewed by the Executive Review Board (ERB).

Tier 2 covers proposed new and expansion priority programs and projects (PAPs) on top of ongoing PAPs under Tier 1.

As of May, agency budget proposals for 2026 have already ballooned to around ₱11 trillion, surpassing this year’s ₱9.2-trillion worth of funding requests. The DBM had said this was due to numerous PAPs being eagerly pushed by agencies.

As such, the 2026 budget proposal is expected to exceed 2025’s ₱6.326-trillion appropriations and reach a new record high.

It can be recalled that former President Rodrigo Duterte alleged that President Ferdinand Marcos Jr. signed blank pages in the proposed 2025 national budget, likening it to a blank check. The DBM later on denied the claim.

President Marcos also allocated zero budget for state health insurer PhilHealth in this year’s budget, citing the agency’s ₱600 billion in reserve funds—a move that has drawn several criticisms from the public.