Instead of a routine year-end approval, the country enters 2026 with a newly enacted spending plan shaped by revisions and delayed timing, following the signing of a P6.793-trillion national budget into law on Monday.
President Ferdinand Marcos Jr. approved the measure as Republic Act No. 12314 while rejecting P92.5 billion worth of unprogrammed appropriations, trimming portions of the proposal that depended on uncertain revenue sources.
In remarks delivered after the signing, Marcos framed the budget against the difficulties faced by the country over the past year. “The year 2025 tested our nation on many fronts. We experienced climate-related disruptions, earthquakes, economic uncertainty, and the exposure of widespread corruption within our system,” he said. He added, “These challenges are painful, but they also made one thing clear: Real change could no longer wait.”
Education emerged as the largest recipient of funding, with P1.345 trillion set aside for the sector. The allocation covers the hiring of 32,916 teaching staff and 32,268 non-teaching personnel in public schools, alongside funding for nearly 25,000 new classrooms across the country.
Health services were granted their biggest allocation to date at P448.125 billion. The funding is earmarked for the Department of Health’s Universal Health Care initiatives, including Zero Balance Billing, disease prevention and treatment programs, and expanded surveillance systems.
Agriculture was assigned P297.102 billion, aimed at strengthening food security, upgrading supply chains, and providing support to farmers and fisherfolk. The President said part of the funding would go toward additional Farm-to-Market Roads to reduce production costs and stimulate rural economic activity.
Social services received P270.189 billion to support programs focused on improving living conditions and strengthening human capital. Separate funding of P15.33 billion was allocated for the Disaster Rehabilitation and Reconstruction Assistance Program under the National Disaster Risk Reduction and Management Fund.
The budget signing took place later than initially planned, after adjustments to the legislative calendar and further review of the proposed expenditures.
The delay meant the government operated under a reenacted budget at the start of the year, marking the first such occurrence during Marcos’ presidency.
