Manila: President Ferdinand R. Marcos Jr. signed into law the PHP6.793-trillion national budget for 2026, vetoing PHP92.5 billion worth of items under the Unprogrammed Appropriations to tighten safeguards on public spending and reinforce fiscal discipline.
According to Philippines News Agency, the signing of Republic Act 12314, or the General Appropriations Act (GAA) of 2026, took place at Malaca±an Palace. In his speech, Marcos emphasized that the challenges of 2025, including climate-related disruptions, economic uncertainty, and the exposure of corruption, necessitated immediate reforms.
Marcos highlighted the significance of the 2026 budget as a pivotal moment for governance reforms and rebuilding public trust. He urged the nation to embrace necessary but challenging reforms to deliver an honest and effective government to the Filipinos.
Education received the highest allocation at PHP1.345 trillion, intended for creating teaching and non-teaching positions, teacher promotions, and classroom construction nationwide. Marcos stated that this funding will sustain momentum in education reform.
The health sector was allocated its largest budget in history, at PHP448.125 billion, aimed at advancing universal healthcare. The funds are designated for the Department of Health's Universal Health Care Fund, Zero Balance Billing program, and other health initiatives to ensure quality and affordable healthcare for all Filipinos.
Nearly PHP129.8 billion was allocated to strengthen the Philippine Health Insurance Corp. (PhilHealth), including PHP60 billion restored following a Supreme Court decision, to help reduce out-of-pocket expenses for Filipino families.
The agriculture sector received PHP297.102 billion to modernize supply systems, support farmers and fisherfolk, and fund farm-to-market roads. Marcos emphasized the importance of these investments in connecting farming communities to economic hubs and reducing transportation costs.
Social services were allocated PHP270.189 billion to address systemic vulnerabilities and promote inclusive growth, with an aim to achieve a single-digit poverty rate by 2028. The 2026 GAA also provides increased allocations for local government units and includes PHP15.33 billion for disaster rehabilitation and reconstruction.
Funding for military and uniformed personnel was retained, with updated base pay and increased subsistence allowances. Marcos underscored that unprogrammed appropriations are not to be misused, enforcing strict safeguards and transparency in releases.
Marcos vetoed items under the Unprogrammed Appropriations totaling almost PHP92.5 billion, reaffirming his commitment to ensuring the prudent use of public funds.
