Despite limited resources, the Cabinet-level Development Budget Coordination Committee (DBCC) has approved a record-high national budget for next year at ₱6.79 trillion, with a focus on social services.

Next year’s record-high budget would support sustained delivery of public goods and services amid expectations of slowing domestic growth, mainly to be brought about by external economic challenges such as the ongoing conflict between Israel and Iran, and the three-month-old tariffs imposed by the United States (US).

Data showed that this has increased by 7.4 percent from this year’s budget of ₱6.32 trillion. This is also equivalent to 22 percent of the country’s economic output. 

Budget Secretary Amenah F. Pangandaman, who also heads the DBCC, said during a press briefing on Thursday, June 27, that the national budget for the fiscal year (FY) 2026 “prioritizes human capital development by prioritizing investments in quality education, healthcare, and workforce upskilling.”

Pangandaman said these priorities will be complemented by “continued investments in the Build, Build, More (BBM) Infrastructure Program and digital transformation.”

The Department of Budget and Management (DBM) said that the approved budget reflects the Marcos administration’s commitment to driving growth “while maintaining fiscal discipline.”

Enhanced climate and disaster resilience, stronger social protection systems, and improved accessibility of Filipinos to basic services are also among the top priorities, majors initiatives to be funded by the 2026 budget.

Pangandaman noted that at the onset, the DBM received a total of P10.10 trillion worth of proposals from several government agencies. 

“However, given the limited fiscal space and the government’s commitment to gradually reduce the fiscal deficit over the medium term, the DBM undertook a rigorous evaluation process,” she said.

“With limited resources, we focused on prioritizing programs and projects that deliver measurable impact, aligned with our national goals, and are ready for implementation. We also carefully evaluated agencies’ absorptive capacity to ensure effective utilization of funds,” Pangandaman said. 

“By nurturing future-ready generations through coordinated policy implementation and strategic investments, the government is committed to reducing poverty to single-digit levels, creating quality jobs, safeguarding macroeconomic stability, and ultimately achieving our Agenda for Prosperity in the Bagong Pilipinas—even amidst global uncertainties,” the budget chief concluded. 

DBM said the proposed National Expenditure Program (NEP) for 2026 is set to be submitted to the 20th Congress in August.