The Makati Business Club (MBC) on Monday welcomed the signing of the 2026 General Appropriations Act (GAA), saying the new budget marks a clear step up from recent fiscal plans, particularly in its focus on education, agriculture, and climate-resilient infrastructure.
In a statement, the influential business group cited four factors supporting its more upbeat assessment. Foremost is education spending, which now reaches 4.36 percent of gross domestic product—finally meeting the widely accepted global benchmark of at least 4 percent.
MBC cautioned, however, that higher allocations alone will not be enough. Persistent weaknesses in budget utilization and project execution, it said, must be addressed for the increased funding to translate into better learning outcomes.
Agriculture, a long-standing priority for the group, also emerged as a major winner. The sector received P214.39 billion, the highest allocation in over a decade.
MBC said the increase sends a strong signal on food security, farmer productivity, and rural development at a time of elevated food prices and climate risks.
The group further welcomed the restoration of funding for PhilHealth and Project NOAH.
It said Project NOAH could anchor a more coherent national approach to flood control and climate-resilient infrastructure, particularly if combined with nature-based solutions.
In this context, MBC reiterated its support for creating a cabinet-level Department of Water to improve coordination on water security and flood management.
Still, MBC flagged concerns over unprogrammed appropriations it considers constitutionally questionable, warning these could be prone to discretionary use or patronage, particularly for social welfare or “ayuda” programs. It urged the issuance of an executive order to enforce rights-based, rules-based disbursement and tighter limits on confidential and intelligence funds.
The 2026 budget reflects a more disciplined allocation strategy aligned with long-term growth drivers. Execution and governance, rather than headline figures, will determine whether this reset delivers durable economic and social gains.
