BEYOND BUDGET
Assalamu alaikum wa Rahmatullahi wa Barakatuh.
In last week’s article, I discussed the government’s initiatives to develop and protect the capabilities of individuals and families under the ₱6.793 trillion Fiscal Year (FY) 2026 National Expenditure Program (NEP), anchored on the first pillar of the Philippine Development Plan (PDP) 2023-2028. This week, allow me to discuss the programs, activities, and projects we have funded under the NEP aligned with the second pillar: Transforming production sectors to generate more quality jobs and competitive products.
As President Ferdinand R. Marcos Jr. (PBBM) highlighted in his PDP message, “his administration will endeavor to reduce poverty to a single-digit level by 2028 through rapid, sustained, and inclusive growth that will create more, better, and resilient jobs.” In his fourth State of the Nation Address, he reiterated this, emphasizing that government agencies are working together to provide more and better opportunities, especially for the remaining four percent unemployed Filipinos.
In adherence to the President’s directive, we in the Department of Budget and Management, together with other government agencies in the Executive branch, designed the 2026 proposed budget to generate more and high-quality jobs to raise incomes and increase our country’s competitive advantage in the global market. We will do this by modernizing the agriculture and agribusiness sector, revitalizing industries, reinvigorating services, advancing research and development, as well as innovation, and promoting trade and investments.
Agriculture
We will continue to boost agricultural productivity and ensure food security, with ₱239.2 billion allocated to the Department of Agriculture (DA) and its attached agencies. Of this, ₱29.9 billion is for the National Rice Program to ensure rice sufficiency and ₱30 billion for the Rice Competitiveness Enhancement Fund (RCEF) to modernize farm machinery and equipment, develop rice seeds, expand credit assistance, and provide rice extension services, among others. Meanwhile, to achieve rice security, ₱10 billion has been allocated for the Rice for All Program, including the Benteng Bigas Meron Na Program, to further expand access to affordable rice at public markets and KADIWA sites. Additionally, ₱11.2 billion has been allocated for the Buffer Stocking Program to procure 300,000 metric tons of palay for use during crises, such as emergencies and disasters.
To widen access to agricultural products, ₱2.1 billion will be invested in a new national agricultural food hub in Pampanga for selling agricultural commodities and to serve as a storage and processing center for farmers and traders. We are also investing ₱16 billion for the construction of 1,067 kilometers of Farm-to-Market Roads (FMRs) to reduce transport and logistics costs, while the Philippine Rural Development Project (PRDP) Scale-Up will get ₱10 billion to build more infrastructure, such as post-harvest facilities and cold storage, among others. To improve irrigation systems nationwide, a total of ₱32 billion under the National Irrigation Administration and ₱720 million under the DA will be used to irrigate more than two million hectares of farms during crop seasons.
Trade
To boost trade, investment, and competitiveness, ₱9.9 billion was allocated to the Department of Trade and Industry and its attached agencies in 2026. This will strengthen Philippine exports, attract investments, promote skills upgrading, and advance green businesses.
To encourage the growth of Micro, Small, and Medium Enterprises (MSMEs), we are investing ₱944 million in the MSME Development Program and ₱1.5 billion to provide accessible and affordable credit through the Pondo sa Pagbabago at Pag-Asenso (P3) Program. Meanwhile, the Exports and Investments Development Program will receive ₱962 million to support key strategies that advance trade facilitation, export competitiveness, and investor confidence in the Philippines, while the One Town, One Product Philippines Program will receive ₱86 million to support inclusive enterprise development in local communities. Additionally, the Industry Development Program was allocated ₱740 million to develop and upgrade the competitiveness of Philippine industries, especially those with high employment and export potential.
Tourism
The proposed FY 2026 National Budget underscores the government’s commitment to elevating the Philippines on the global tourism stage — recognizing the sector as a powerful driver of economic growth. To realize this vision, the Department of Tourism will receive ₱3.7 billion, while ₱1.3 billion is earmarked for the Tourism Promotions Board to showcase the Philippines as a worldclass destination for travel, meetings, conferences, and exhibitions.
Science, technology, and innovation
Following the country's drive toward innovation-led growth, in 2026, the Department of Science and Technology will receive ₱30.4 billion to power cutting-edge research, breakthroughs, technologies, and transformative development initiatives, with its research and development to be funded with ₱3.9 billion, supporting, among others, the conduct of research and utilization of technologies in industrial manufacturing, mineral processing, and energy (₱246 million); textiles (₱203 million); advanced fields of study, including microelectronics and information technology (₱193 million); wood and non-wood products (₱116 million); metal casting, metal working, and surface engineering (₱110 million); and food and nutrition (₱93 million).
Beyond budget, the PBBM administration crafted the FY 2026 NEP to transform production sectors that will pave the way for creating more quality jobs and products, sustaining food security, stimulating the economy, and increasing our country's competitive edge. Through these, we not only reduce poverty but also create sustainable livelihoods and improve our global competitiveness. Together, these will pave the way for our economy to not only grow but also be more inclusive, resilient, and future-ready.
(Amenah F. Pangandaman is the Secretary of the Department of Budget and Management.)