Marcos Administration Proposes ₱7.2-Trillion National Budget for 2027

The Marcos administration has proposed a ₱7.2-trillion national budget for 2027, a 6% increase from the previous year’s spending plan, with funding focused on economic growth, infrastructure development, and high-impact government programs while navigating tightening fiscal constraints.

MANILA, Philippines – The Marcos administration has proposed a ₱7.2-trillion national budget for fiscal year 2027, marking another significant increase in government spending as it seeks to strengthen economic growth, accelerate infrastructure development, and expand programs aimed at improving the lives of millions of Filipinos despite mounting fiscal constraints.

According to National Budget Memorandum (NBM) No. 158 issued by the Department of Budget and Management (DBM), the proposed budget represents approximately 21.7 percent of the country’s projected gross domestic product (GDP). It is also six percent, or ₱407 billion, higher than the ₱6.793-trillion national budget proposed for 2026.

The memorandum, signed by DBM Acting Secretary Kim Robert de Leon and published on the department’s official website, outlined the government’s spending priorities for the coming fiscal year, emphasizing that public funds will be directed toward programs, activities, and projects that create greater opportunities for Filipinos while building a more resilient and secure nation.

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“The proposed budget for next year will focus on programs, activities and projects (PAPs) that seek to create better opportunities and address the needs of the Filipino people, helping ensure a more resilient and secure future for all,” the memorandum stated.

De Leon explained that all agency budget proposals underwent a comprehensive review designed to ensure that government resources are concentrated on productive and high-impact development initiatives. He emphasized that agencies’ capacity to efficiently utilize appropriated funds and their readiness to implement projects would play a critical role in determining funding allocations, particularly for new and expanded government programs.

The DBM chief stressed that every peso allocated under the proposed budget should translate into measurable and meaningful accomplishments that directly benefit the public.

The memorandum also acknowledged the significant fiscal challenges confronting the government as it prepares the 2027 spending plan. It noted that the administration faces an increasingly narrow fiscal space due to rising funding requirements for automatically appropriated expenditures, including the National Tax Allotment shares of local government units, interest payments on government obligations, newly enacted laws, and recurring mandatory expenditures.

Because of these financial pressures, the DBM said only programs, activities, and projects that have completed the required reviews and secured approval from relevant oversight agencies or committees within the prescribed budget preparation timetable will be considered for funding under the proposed 2027 national budget.

Despite the limited fiscal space, the administration intends to prioritize strategic investments that are expected to generate long-term economic returns. These include funding for pre-construction activities, government counterpart financing for foreign-assisted projects, and the remaining financial requirements necessary to accelerate the completion of ongoing flagship infrastructure projects.

According to De Leon, prioritizing these initiatives will help facilitate the timely implementation of critical infrastructure while maximizing their economic multiplier effects through increased investment, employment generation, and improved connectivity across the country.

The issuance of National Budget Memorandum No. 158 is anchored on the macroeconomic assumptions and fiscal aggregates approved by the Development Budget Coordination Committee (DBCC) through its Ad Referendum Approval dated June 16. These economic projections serve as the framework for preparing the proposed national budget before it is submitted for legislative deliberation.

The proposed ₱7.2-trillion spending plan reflects the administration’s effort to strike a balance between sustaining economic momentum, maintaining fiscal discipline, and ensuring that government expenditures remain focused on projects and programs capable of delivering tangible and lasting benefits to the Filipino people.

Chronological Budget Timeline Under the Marcos Administration

June 30, 2022 – President Ferdinand Marcos Jr. assumes office, inheriting the ₱5.024-trillion 2022 General Appropriations Act (GAA) enacted under the previous administration.

December 16, 2022 – Marcos signs the ₱5.268-trillion 2023 General Appropriations Act (Republic Act No. 11936), his administration’s first full-year national budget, prioritizing agricultural recovery, education, healthcare, and economic revitalization.

December 20, 2023 – The President approves the ₱5.768-trillion 2024 General Appropriations Act (Republic Act No. 11975), aligning government spending with the administration’s “Agenda for Prosperity,” including poverty reduction, infrastructure modernization, and human capital development.

December 30, 2024 – Marcos signs the ₱6.326-trillion 2025 General Appropriations Act (Republic Act No. 12116), while exercising a line-item veto amounting to ₱194 billion to remove unprogrammed appropriations and strengthen fiscal discipline.

January 1–4, 2026 – The national government temporarily operates under a reenacted 2025 budget due to adjustments in the legislative timetable and the extended review of the proposed 2026 spending program.

January 5, 2026 – President Marcos enacts the ₱6.793-trillion 2026 General Appropriations Act (Republic Act No. 12314), providing record funding for education, social protection programs, healthcare, and the “Build Better More” infrastructure initiative while vetoing ₱92.5 billion in unprogrammed appropriations.

June 25, 2026 – The Department of Budget and Management issues National Budget Memorandum No. 158, formally launching the budget preparation process for fiscal year 2027 and proposing a record ₱7.2-trillion national budget aimed at sustaining economic growth, expanding infrastructure investments, and strengthening priority social and development programs.

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