Gov't deploys over 60% of record ₱6.8-trillion budget to kickstart year
By Derco Rosal
The national government front-loaded more than 60 percent of this year’s record national budget in January, as the Marcos administration accelerates spending to bankroll infrastructure and social priority projects.
The Department of Budget and Management (DBM) released ₱4.25 trillion as of the end of last month, representing 62.6 percent of the total ₱6.793 trillion obligation program for 2026, according to data released by the agency.
While the total volume of funds deployed is higher than the ₱4.10 trillion released during the same period in 2025, the pace of distribution is slightly behind last year’s 64.9 percent utilization rate.
The DBM previously noted the importance of early procurement and immediate fund release to ensure that government agencies can implement projects during the dry season, avoiding the typical bottlenecks associated with the mid-year monsoon.
Of the total allotments, ₱2.881 trillion was issued under the 2026 General Appropriations Act, covering nearly two-thirds of the ₱4.403 trillion set aside for the year.
Line departments received the bulk of the initial funding, with ₱2.759 trillion released to various agencies, or about 75 percent of their ₱3.683 trillion adjusted budget. In contrast, special purpose funds saw a more measured rollout, with ₱121.9 billion released, or just 16.9 percent of the ₱719.5 billion allocation.
Automatic appropriations, which do not require annual legislative approval, saw ₱1.370 trillion in releases, or 57.3 percent of the ₱2.390 trillion total. This segment included the full disbursement of ₱1.191 trillion in national tax allotments for local government units and ₱94 billion in block grants. The government also fully settled ₱82.2 billion in retirement and life insurance premiums for state employees during the month.
Sectoral data showed that the Department of Education remains the primary recipient of government funding, securing ₱788.9 billion in January. Other major allocations included ₱251.3 billion for the Department of Health, ₱223.7 billion for the Department of Social Welfare and Development, and ₱123.9 billion for the Department of Transportation. The Department of Public Works and Highways, a key driver of the “Build Better More” initiative, received ₱63.9 billion.
Several items remained untouched at the start of the year. The DBM has yet to release any of the ₱950 billion earmarked for interest payments or the ₱28.7 billion allocated for net lending. Similarly, the ₱14.5 billion tax expenditures fund and the ₱480,000 set aside for the pensions of former presidents or their widows showed zero utilization as of the end of January.