The Marcos administration has put forward a proposed national budget of about P7.2 trillion for 2027, roughly 6 percent higher than the current year’s P6.793-trillion program. The 2027 figure aligns with the Department of Budget and Management’s medium-term expenditure plan, which pegs the proposed budget at P7.232 trillion — an increase of about 6.46 percent over 2026.
The proposal comes as the government’s economic team scaled back its near-term projections. The Development Budget Coordination Committee cut its 2026 growth target to 3.5 percent to 4.5 percent, down from the earlier 5-to-6-percent range, after the economy expanded by just 2.8 percent in the first quarter of the year. Economic Planning Secretary Arsenio Balisacan said the revision was unavoidable given the conditions the country is facing, noting that the second half of 2026 is expected to improve as delayed public spending catches up. Balisacan said growth in the first quarter could have reached 3.8 percent had government spending proceeded as planned, attributing nearly a full percentage point of the shortfall to underspending alone.
Two pressures weigh on the outlook. The first is the war in the Middle East, which has driven up global oil prices — a particular vulnerability for an economy dependent on imported energy, feeding inflation and squeezing household purchasing power. The second is the lingering fallout from the flood control graft scandal, which slowed infrastructure spending after the government tightened its review of public works projects. Presidential Communications Office Undersecretary Claire Castro said funds were not released hastily while projects were being scrutinized, which contributed to the slowdown.
Budget Secretary Kim Robert de Leon, quoted by the Palace, said the government intends to pursue high-quality public investments backed by stronger project preparation and improved budget execution to sustain long-term growth, while maintaining safeguards against misuse of public funds. Manila Bulletin reported that De Leon believes the government now needs to increase spending, particularly on infrastructure, even as it keeps controls in place.
The DBM has said the 2027 budget will serve as a key vehicle for the final phase of the Philippine Development Plan 2023–2028, with priorities including protecting household purchasing power, infrastructure-led growth, climate resilience, the digitalization of public services, and more balanced development across regions. Revenue collections for 2026 are targeted at P4.807 trillion under the revised assumptions.
