President Ferdinand Marcos Jr. has greenlit the proposed ₱6.793-trillion National Expenditure Program (NEP) for fiscal year 2026, a budget aimed at improving education quality and uplifting the lives of Filipinos, Malacañang announced Tuesday.
In a Palace briefing, Press Officer Claire Castro said the President emphasized that the 2026 budget will go beyond fueling economic growth and focus on long-term nation-building. “President Ferdinand R. Marcos Jr. approved the ₱6.793 trillion proposed budget for next year,” she said, highlighting the administration’s commitment to ensuring better lives for both present and future generations.
The proposed budget is 7.4% higher than this year’s ₱6.3-trillion allocation and is equivalent to 22% of the country’s gross domestic product. The Department of Budget and Management (DBM) described the 2026 spending plan as anchored on the Philippine Development Plan (PDP), built around three pillars: empowering individuals and families, transforming production sectors, and fostering a supportive and secure environment.
A significant portion of the NEP—₱2.6 trillion—has been earmarked for maintenance and operating expenses, supporting various government programs. Personnel services will receive ₱1.9 trillion, marking a 16.8% increase from the previous year. Capital outlays, intended for infrastructure projects, will get ₱1.2 trillion, while ₱950 billion has been allocated for financial expenses.
According to the DBM, national government agencies will get the lion’s share at ₱4.3 trillion, with local government units receiving ₱1.3 trillion. Government-owned or -controlled corporations will be granted ₱188.3 billion through subsidies and equity support.
Budget Secretary Amenah Pangandaman said the theme for next year’s NEP, “Nurturing Future-Ready Generations to Achieve the Full Potential of the Nation,” reflects the administration’s emphasis on investing in human capital—particularly education, health, and skills development.
Pangandaman added that while agencies initially submitted proposals amounting to ₱10.1 trillion, the final figure was trimmed to align with fiscal consolidation goals and limited budget space.
The President is expected to transmit the proposed budget to Congress within 30 days after the opening of the regular session.
