The government will formally submit to Congress on Tuesday, Aug. 11, the proposed P7.2-trillion National Expenditure Program (NEP) for 2027, setting in motion the next stage of the national budget process, Malacañang said Monday.

Presidential Communications Office (PCO) Undersecretary Claire Castro said the Department of Budget and Management (DBM), led by Secretary Kim de Leon, submitted the Fiscal Year (FY) 2027 NEP to President Marcos on Monday, Aug. 10.

The proposed budget amounts to P7.2 trillion, or 21.7 percent of the country's projected gross domestic product, making it the highest proposed national budget, according to the DBM.

The 2027 proposal is P407 billion, or about 6 percent, higher than the P6.7932 trillion appropriations programmed for 2026, based on the DBM's fiscal aggregates.

Castro said the budget will focus on education, health, livelihood, security, and strengthening communities under the theme “People-Centered Growth for an Inclusive and Resilient Future.”

“Layon nitong gawing mas kapaki-pakinabang ang bawat pisong pangpublikong pondo sa pamamagitan ng mas mahusay na serbisyo at mas maraming oportunidad para sa mga Pilipino (It seeks to make every peso of public funds more beneficial through better services and more opportunities for Filipinos),” she said.

The DBM's 2027 expenditure priorities framework identifies human capital development, food security, infrastructure development, digitalization, environmental and climate resilience, and the implementation of full devolution to local government units as key spending priorities.

Under human capital development, the government plans to expand access to quality education, accelerate the Academic Recovery and Accessible Learning (ARAL) Program, strengthen Universal Health Care, improve social protection targeting, and support digital upskilling and reskilling.

The framework also prioritizes climate-resilient agriculture, Infrastructure Flagship Projects, digital government services, disaster preparedness, and targeted support for low-income and disadvantaged local government units.

The proposed budget is part of the government's medium-term fiscal strategy, with revenues projected to grow by nearly 8 percent annually from 2026 to 2030 while the fiscal deficit is expected to narrow from 5.4 percent of GDP in 2026 to 3.5 percent by 2030.

For 2027, the government is projecting real GDP growth of 5 to 6 percent and inflation of 4 to 5 percent, compared with projected GDP growth of 3.5 to 4.5 percent and inflation of 6 to 7 percent in 2026.

Castro said the DBM is scheduled to hold a press briefing at Malacañan at 1 p.m. on Tuesday to provide additional details on the proposed 2027 budget.