Manila: President Ferdinand R. Marcos Jr. is actively monitoring the entire process of the 2026 national budget to ensure alignment with government priorities and the inclusion of only ‘shovel-ready projects,’ as stated by Budget Secretary Amenah Pangandaman.
According to Philippines News Agency, Pangandaman revealed that President Marcos is even prepared to join the bicameral conference committee’s budget discussions on the proposed 2026 national budget if necessary. She mentioned that as early as January, when the 2025 budget was finalized, the President had already given instructions regarding the 2026 budget. She emphasized that the President is committed to engaging in the budget process until its conclusion and is willing to sit with the bicameral committee if required.
Pangandaman explained that the Department of Budget and Management (DBM) employs a Two-Tier Budgeting Approach (2TBA) for the budget process. Tier 1 encompasses regular expenses such as salaries, operating costs, and ongoing capital projects, while Tier 2 involves large or new projects requiring additional funding based on requests from relevant agencies.
She emphasized the importance of focusing on projects that are ready for implementation, highlighting the challenges of funding projects that are not shovel-ready. Pangandaman noted that the national budget continues to play a significant role in boosting the Philippine economy, attributing the increase in economic growth to government spending.
The 2026 national budget preparation process was officially launched by the DBM in January with the National Budget Call Forum, initiating the preparation phase for the National Expenditure Program, which outlines the President’s proposed budget for the upcoming year. The target spending level for Fiscal Year 2025 is estimated to be nearly PHP7 trillion, based on the government’s Medium-Term Fiscal Framework.
The Development Budget Coordination Committee (DBCC) is scheduled to meet on May 26 to finalize and announce the official budget ceiling, contingent on revenue projections from the Department of Finance, Bureau of Internal Revenue, and Bureau of Customs. Once the budget ceiling and proposed programs are finalized, the DBM, along with the DBCC, DOF, and the Department of Economy, Planning, and Development, will meet with President Marcos to review key projects, particularly those under the administration’s priority agenda.
