BEYOND BUDGET
Assalamu alaikum wa Rahmatullahi wa Barakatuh.
Last week, I shared some of the spending priorities of the administration of President Ferdinand R. Marcos, Jr. (PBBM) under the ₱6.793 trillion Fiscal Year (FY) 2026 National Expenditure Program (NEP) to create an enabling environment for our country to thrive. These initiatives aim to enhance and upgrade infrastructure and ensure affordable, reliable, and clean energy.
This week, allow me to share programs, activities, and projects that promote peace, security, and justice; foster global diplomacy; advance climate action and disaster resilience; and ensure bureaucratic efficiency and good governance.
Peace and order
As PBBM noted during his fourth State of the Nation Address (SONA), peace is an essential foundation of our Bagong Pilipinas. Hence, as we focus on our development, we are also strengthening peace, security, and order. I agree with the President that when our communities are safe, parents can work without fear, children can study with hope, and families can dream of a brighter tomorrow.
Next year, we are investing ₱430.9 billion in our defense sector, with ₱299.3 billion earmarked for the Department of National Defense and its attached agencies. Meanwhile, the Philippine Coast Guard will receive ₱35.4 billion to support its maritime search and rescue operations and to acquire and restore various watercraft and search and rescue vessels. Further, ₱71.6 billion has been allocated to cover the payment of the subsistence allowance of military and uniformed personnel, which has been increased from ₱150 to ₱350 per day to support the welfare of troops and their families.
To advance our interests in the global community, improve bilateral and multilateral relations, and uphold the rights and welfare of Filipinos overseas, the Department of Foreign Affairs was allocated ₱30.1 billion.
For peace and order, the Department of the Interior and Local Government will receive ₱287.5 billion. And, towards the effective management and supervision of the country's Comprehensive Peace Process, ₱7.3 billion will be allocated for the Office of the Presidential Adviser on Peace, Reconciliation, and Unity. Additionally, a total of ₱67.9 billion is allocated for the Judiciary and ₱43.6 billion for the Department of Justice, as we work toward building a fair, efficient, accessible, reliable, and improved justice system.
Climate action and disaster resilience
To scale up sustainable and green investments, ensure the rehabilitation and protection of natural resources, and for the country's collective effort to ensure long-term climate and disaster resilience, we have allocated ₱29.3 billion for the Department of Environment and Natural Resources.
To enhance public open spaces and promote more livable, sustainable, and connected communities, the Green Green Green Program will receive ₱1 billion, while the Support and Assistance Fund for Participatory Budgeting is allocated ₱1 billion to support projects that expand access to safely-managed and resilient water supply and sanitation services in low-income municipalities and to finance climate-smart evacuation centers in high-risk and impoverished municipalities lacking permanent evacuation centers.
For improved preparedness and more efficient emergency response, the Weather and Climate Forecasting and Warning Program of the Department of Science and Technology-PAGASA will receive ₱1.1 billion, while the National Disaster Risk Reduction and Management Fund will be allocated with ₱31 billion, considering the escalating cost of damages caused by natural disasters.
Bureaucratic efficiency
In adherence to PBBM’s SONA directive that services must be felt immediately by our kababayans, we will empower local and regional governments, rationalize government systems, especially through digitalization, and continue to improve public sector efficiency through reforms to enable government offices to respond more effectively and more efficiently to citizens' needs.
To empower local government units, we have increased their allocation to ₱1.344 trillion. Of this amount, ₱1.191 trillion has been earmarked for the national tax allotment for more responsive and efficient delivery of public services. To ensure that local socioeconomic development efforts are aligned with national goals, the Regional Development Councils will receive ₱150 million. Meanwhile, the Bangsamoro Autonomous Region in Muslim Mindanao is allocated ₱104.6 billion, composed of its Annual Block Grant (₱94 billion), Special Development Fund (₱10.6 billion), and share in taxes, fees, and charges collected in the region.
We have also dedicated ₱87.33 billion to accelerate the digital transformation of government services.
Program Convergence Budgeting
Finally, as directed by the President, we will use the Program Convergence Budgeting (PCB) Approach, an inter-agency effort, to eliminate program duplication and align projects. We have identified 15 PCB programs directly supporting priorities in the Philippine Development Plan, including the Risk Resiliency Program and the Water Resources Program. New PCBs are also introduced for FY 2026, including the PCB on Public Financial Management (PFM) Systems and the Building Early Growth through Integrated Nurturing or BEGIN Program.
Beyond budget, our country's Agenda for Prosperity can only be achieved through an enabling environment where our people and the economy can flourish. To do this, through the FY 2026 NEP, we in the PBBM administration will continue to invest in peace and order, climate action, and disaster preparedness, building partnerships, and strengthening national and local institutions. With these, I believe we can create peaceful and safe communities, where institutions are strong, and the people are nurtured and empowered to shape a sustainable and future-ready Bagong Pilipinas.
(Amenah F. Pangandaman is the Secretary of the Department of Budget and Management.)