The Development Budget Coordination Committee (DBCC), chaired by Budget Secretary Amenah F. Pangandaman, has approved a proposed P6.793 trillion national budget for 2026, up 7.4 percent from this year’s Projected 6.326 trillion allocation.
The proposed budget represents 22 percent of the country’s projected gross domestic product (GDP) and underscores the government’s commitment to inclusive growth while maintaining fiscal discipline. The budget deficit for 2026 is set at 5.5 percent of GDP.
“This budget prioritizes strategic investments in human capital—quality education, healthcare, and workforce upskilling—along with infrastructure modernization and digital transformation under the Build Better More program,” Pangandaman said.
Initial agency funding requests totaled P10.1 trillion, but the Department of Budget and Management (DBM) scaled this down based on each agency’s readiness and capacity to effectively use funds.
Programs with high impact and measurable outcomes, particularly under the Three-Year Rolling Infrastructure Program and Program Convergence Budgeting, received priority.
“We carefully evaluated programs to ensure they align with national goals and are ready for implementation. The budget reflects a deliberate focus on outcomes,” Pangandaman added.
The National Expenditure Program will be submitted to Congress in August for legislative review.
Meanwhile, the DBCC adjusted key macroeconomic assumptions amid global uncertainties. The GDP growth target for 2025 was revised to 5.5 to 6.5 percent, down from the previous 6 to 8 percent range.
For 2026, growth is now forecast at 6 to 7 percent, also lower than the earlier 6 to 8 percent target.
Inflation assumptions were likewise narrowed to 2 to 3 percent from the previous 2 to 4 percent range, reflecting improved price stability expectations.
