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FY 2026 NEP: Nurturing future-ready generations (Part 3)

Published Sep 3, 2025 12:05 am  |  Updated Sep 2, 2025 06:32 pm
BEYOND BUDGET
Assalamu alaikum wa Rahmatullahi wa Barakatuh.
Last week, I discussed the education sector as the top priority in the ₱6.793 trillion Fiscal Year (FY) 2026 National Expenditure Program (NEP), or the proposed national budget of President Ferdinand R. Marcos Jr., (PBBM), which we submitted to Congress for their review, deliberation, and approval.
As the President emphasized in his budget message, with the administration reaching midterm, its strategy will focus not only on infrastructure but in our biggest treasure: our people, especially the next generations. Hence, we are pursuing strategies to develop and protect the individual’s and families’ capabilities, anchored on the first pillar of the Philippine Development Plan 2023-2028.
Health sector
Aside from education, we are prioritizing the health sector to promote human and social development. Under the NEP, we allocated ₱320.5 billion for this sector to expand and enhance healthcare services nationwide.
This includes the ₱53.3 billion for the National Health Insurance Program of the PhilHealth to strengthen pooled health financial systems, expand public subsidies, streamline insurance contributions, and reduce out-of-pocket expenses, especially for the poor and vulnerable.
To fund medical assistance for those who need the most, the Medical Assistance to Indigent and Financial-Incapacitated Patients (MAIFIP) will receive ₱24.2 billion, while the Cancer Assistance Fund (CAF), ₱1.3 billion, so that no Filipino is denied life-saving care due to poverty.
Additionally, we are also increasing the budgets of Department of Health (DOH) hospitals in Metro Manila to ₱27.7 billion (20.2 percent increase from FY 2025’s ₱23.2 billion) and DOH regional hospitals to ₱99.5 billion (26.1 percent increase compared to FY 2025’s ₱78.9 billion).
To provide affordable, quality healthcare closer to communities, the Bagong Urgent Care and Ambulatory Services (BUCAS) centers will receive a total of ₱1.1 billion.
Social protection
To reduce vulnerabilities and protect purchasing power, we allotted ₱227 billion for the social services sector, with ₱223.4 billion allocated to the Department of Social Welfare and Development (DSWD). Its projects include the ₱113 billion Pantawid Pamilyang Pilipino Program (4Ps), the government’s banner program that will provide various financial and social assistance to improve the quality of life of around 4.4 million economically-disadvantaged household beneficiaries; the ₱27 billion Protective Services for Individuals and Families in Difficult Circumstances, for timely cash and material assistance for those facing abuse, calamities, and other emergencies; the ₱1.9 billion Walang Gutom 2027: Food STAMP Program to empower around 50,000 qualified Filipino households. We also allocated ₱6.1 billion for the Supplementary Feeding Program to provide more children with safe, sufficient, and nutritious food.
Further, in recognition of senior citizens’ contributions to nation-building, we allocated ₱49.8 billion for the Social Pension for Indigent Senior Citizens, a monthly pension of ₱1,000 for more than four million qualified senior citizens nationwide, and ₱3.3 billion for the cash gift of Filipinos reaching milestone ages from 80 to 100 years, under the Expanded Centenarian Act.
Meanwhile, to protect the welfare of indigenous communities, the National Commission on Indigenous Peoples will receive ₱1.8 billion, a 42.1 percent increase from FY 2025 GAA of ₱1.3 billion. And, to uphold the rights of fellow Muslim Filipinos and ensure their meaningful participation in nation-building, we allocated ₱1.2 billion to the National Commission on Muslim Filipinos, with ₱653 million for the preservation, promotion, and development of Muslim Cultural Heritage and Education through Regional Implementation, and ₱95 million for Hajj Administration and Supervision.
The remaining ₱10.2 billion for social services has been allocated to the Department of Migrant Workers to protect overseas Filipinos, with ₱1.2 billion for the Agarang Kalinga at Saklolo para sa mga OFW na Nangangailangan (AKSYON) Fund, to provide comprehensive assistance to OFWs, and ₱1.3 billion under the Support for the Emergency Repatriation Program.
Employment
To raise the quality of employment, develop a skilled labor force, and strengthen income-earning capacities, especially of the youth, informal workers, and vulnerable populations, we provided ₱45 billion agency budget for the Department of Labor and Employment and ₱5.2 billion for DSWD programs, activities and projects to implement community-based employment and livelihood programs, including cash-for-work schemes for disaster-affected and disadvantaged individuals.
To help the youth continue their education, we dedicated ₱848 million for the Special Program for Employment of Students (SPES), a program providing short-term employment for indigent but deserving students, out-of-school youth, and displaced workers; and ₱1.1 billion for the Government Internship Program.
Meanwhile, ₱11 billion has been allocated for the Tulong Panghanapbuhay sa Ating Disadvantaged Workers (TUPAD) Program for short-term employment of workers affected by economic displacement, disasters, and seasonality; ₱2.2 billion for the DOLE Integrated Livelihood Program, for start-up capital, training, and equipment of individuals and groups establishing microenterprises; and ₱4.5 billion for DSWD’s Sustainable Livelihood Program to assist households in building more stable and sustainable sources of income.
Beyond budget, we, in the PBBM administration, believe that the FY 2026 NEP is more than a ledger of programs and projects, but an essential tool to developing and protecting the capabilities of individuals and families. Through this, and with your support, I am certain we can empower and nurture our people to be future-ready, paving the way for us to achieve the full potential of the nation and consequently, transform into a reality our collective aspiration of a Bagong Pilipinas that provides improved quality of life for every Filipino.
(Amenah F. Pangandaman is the secretary of the Department of Budget and Management.)
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