Following the signing of the ₱6.793-trillion 2026 national budget, the Marcos Jr. administration has jumpstarted preparations for the 2027 proposal—the last full-year spending under its watch—which includes more rigorous oversight of climate and flood control projects.

Acting Department of Budget and Management (DBM) Secretary Rolando U. Toledo issued the national budget call for fiscal year (FY) 2027 through the 101-page National Budget Memorandum No. 156 on Monday, Jan. 5, the same day President Ferdinand R. Marcos Jr. signed the 2026 General Appropriations Act (GAA) under Republic Act (RA) No. 12314.

The DBM targets to submit the 2027 budget bill, whose cap will be determined by the Cabinet-level, interagency Development Budget Coordination Committee (DBCC), to Congress on Aug. 14, 2026, or two weeks after the President’s next State of the Nation Address (SONA).

For the 2027 budget proposal, the DBM has put in place strict endorsement requirements to ensure flood control projects are no longer planned in isolation.

For flood mitigation projects, the DBM mandated the Department of Public Works and Highways (DPWH) to first secure endorsement from the Department of Environment and Natural Resources’ Water Resources Management Office (DENR-WRMO) on the consistency of proposed flood control infrastructure with integrated water resource management.

Also, “all relevant and related river basin initiatives, such as, but not limited to, river basin infrastructure development projects, flood control, environmental protection, and integrated water resources management,” must be endorsed by the DENR’s River Basin Control Office (DENR-RBCO) for inclusion in the 2027 budget proposal.

“All endorsed projects by the responsible departments or agencies shall still be subject to DBM evaluation,” the memorandum read.

Additionally, the DBM requires all infrastructure proposals to factor in “resiliency to withstand natural calamities” and adopt the latest standard costs from the DPWH.

Flood control will be handled through a collaborative “convergence budgeting” approach, with the DENR leading the Water Resources Program and coordinating with the DPWH and other agencies to align projects.

“Given the limited available fiscal space, agency budget proposals will be carefully evaluated in terms of value for money, performance metrics, and alignment with the government's fiscal consolidation strategy,” the memorandum read.

“Only those agency proposals that clearly demonstrate implementation readiness and strong absorptive capacity will be included in the FY 2027 proposed national budget,” it added.

While also advancing its “Build Better More” (BBM) program, the Marcos Jr. administration maintains full support for the poorest, lagging, climate change- and disaster-risk-vulnerable areas.

Last year, the government began weeding out corrupt individuals involved in the misuse of flood control funds. The deepening investigation into the string of cases began with the infamous DPWH contractors Sarah and Curlee Discaya, who were once featured for their luxury cars.

For the 2027 national budget, the government still bans the acquisition of luxury vehicles by government offices, as practiced since 2018.