Double-digit funding boost proposed for education, health in 2026

The Department of Budget and Management (DBM) proposed double-digit increases for the Education, Health and Transportation departments under the 2026 national budget, but reduced the allocation for the Public Works department by 12%.

The DBM on Wednesday submitted the PHP 6.793-trillion National Expenditure Plan for 2026 to the House of Representatives, just over two weeks after President Ferdinand R. Marcos, Jr.’s State of the Nation Address, where he acknowledged public frustration and promised reforms in health, education and transport.

Next year’s budget is equivalent to 22% of the country’s gross domestic product (GDP), and is 7.4% higher than the PHP 6.326-trillion national budget this year.

“The growth of our economy, the biggest contributor is government spending and infrastructure spending,” Budget Secretary Amenah F. Pangandaman told reporters after the turnover ceremonies. “Given what’s happening now, with global uncertainties, we also want to invest more in our people.”

The budget for the Education sector was increased by 16% to PHP 1.224 trillion from PHP 1.055 trillion this year, according to the President’s budget message.

This covers the allocation for the Department of Education (PHP 928.5 billion, up by 18.7%), state universities and colleges (PHP 134.9 billion, up by 6.1%), Commission on Higher Education (PHP 33.9 billion) and Technical Education and Skills Development Authority (PHP 20.2 billion).

“For the first time, the budget for basic and higher education has been increased monumentally to meet UNESCO’s (United Nations Educational, Scientific and Cultural Organization) recommended education spending target of at least 4% of the country’s GDP,” said Ms. Pangandaman.

National Government spending on education for next year would also meet the UNESCO-recommended 15-20% of total public expenditure.

“This is because we are determined to deliver immediate action on child nutrition, address the education crisis and support our youth so they can find jobs,” Ms. Pangandaman said. “If you have a young person who can read, who can study and is healthy, they will contribute to our workforce.”

Infrastructure

Next year’s budget for the infrastructure program stood at PHP 1.556 trillion, equivalent to 5% of the Philippine GDP, according to the budget document.

“We are fast-tracking infrastructure development to create more livable communities, modernize transportation systems and address long-standing challenges,” the DBM said in the budget document.

The Department of Public Works and Highways (DPWH) was allocated PHP 881.3 billion, 12% lower than this year’s PHP 1.007-trillion budget.

“There are still many ongoing (DPWH) projects,” Ms. Pangandaman said in Filipino. “If you peg it at the same level (as last year), their absorptive capacity, they might struggle.”

On the other hand, the Department of Transportation’s proposed 2026 budget was more than doubled to PHP 197.3 billion from PHP 87.2 billion this year.

The government is prioritizing 54 flagship projects next year such as the Bataan-Cavite Interlink Bridge (PHP 27.9 billion), Laguna Lakeshore Road Network (PHP 22.9 billion) and the fourth phase of the Pasig-Marikina River Channel Improvement Program (PHP 7.4 billion).

The government also earmarked PHP 124.1 billion for rail transport upgrades, including PHP 76.1 billion for the North-South Commuter Railway System and PHP 45.4 billion for the first phase of the Metro Manila Subway Project.

Around PHP 69.7 billion will go to so-called Sustainable Infrastructure Projects Alleviating Gaps  programs that involve the construction of roads, bridges and flood control projects.

The Department of Health was earmarked PHP 320.5 billion under next year’s budget, up by 29% from this year’s PHP 248 billion.

State hospitals in Metro Manila were allotted PHP 27.7 billion, while regional hospitals will receive PHP 99.5 billion to boost healthcare capacity.

The Defense department and its attached agencies, such as the Philippine military, was allotted a PHP 299.3-billion budget, up by 10.3% from PHP 271 billion for this year amid growing tensions with China in the disputed South China Sea.

The Philippine Army, Air Force and Navy will collectively receive PHP 260.6 billion under the proposed budget, while PHP 40 billion will go to the Armed Forces’ modernization efforts, based on the budget document.

The government is proposing a PHP 256.5-billion budget for the agriculture sector next year, 81% higher than this year’s PHP 141.7 billion.

Of this amount, PHP 153.9 billion will go to the Department of Agriculture (DA) and its attached agencies, PHP 45.1 billion for the National Irrigation Administration and PHP 17.4 billion for the Department of Agrarian Reform.

The budget for the DA’s National Rice Program went up by 37.8% to PHP 29.9 billion for next year, while the Rice Competitiveness Enhancement Fund will receive PHP 30 billion.

About P10 billion will go towards funding the Marcos administration’s Rice for All Program to help expand access to cheaper rice, with PHP 11.2 billion allotted for the government’s rice buffer stocking initiative.

No ‘AKAP’ funds

Next year’s funding for the Department of Social Welfare and Development stood at PHP 223.4 billion, which is 2.7% higher than the PHP 217-billion budget in 2025. The bulk or PHP 113 billion will go to the Pantawid Pamilyang Pilipino Program, while PHP 49.8 billion will go to social pension for indigent senior citizens.

The government did not allot funds for the Ayuda Para sa Kapos ang Kita Program (AKAP) for this year, Ms. Pangandaman said.

AKAP is a social welfare scheme that provides one-time cash assistance worth PHP 3,000 to PHP 5,000 to workers whose income falls below the poverty threshold. It drew criticism last year after concerns that its disbursement could be politicized by lawmakers.

Meanwhile, the government has allotted PHP 10.77 billion for confidential and intelligence funds (CIF), 11% lower than the PHP 12.1-billion budget this year.

Ms. Pangandaman said the Office of the President was allocated PHP 4.5 billion in secret funds, with the Defense department receiving PHP 1.9 billion under the proposed budget. The remaining funds would go to other agencies, like the National Intelligence Coordinating Agency and Anti-Money Laundering Council.

CIFs are meant to finance surveillance and intelligence information gathering activities, according to a 2015 joint circular between the Commission on Audit, Defense, Budget and Interior and Local Government departments.

On the other hand, the government plans to allocate nearly PHP 1 trillion in 2026 for debt servicing, taking up 14.4% of the proposed budget for next year. This is 12% higher than the PHP 876.73 billion allotted this year.

‘Limited fiscal space’

“While (next year’s budget) is 7.4% higher than this year’s PHP 6.326-trillion national budget, the economic team carefully considered the available fiscal space and worked diligently to tighten the budget,” Ms. Pangandaman said.

The government slashed agency budget proposals by 33% to PHP 6.793 trillion for 2026 from an initial PHP 10 trillion, by prioritizing expenditures that could support economic growth, she added.

“Given our limited fiscal space, we carefully evaluated all submissions,” said Ms. Pangandaman.

The government is targeting 5.5-6.5% GDP growth this year, and 6-7% growth from 2026 to 2028. It also aims to bring down the debt-to-GDP ratio to 60.4% by the end of 2025, and to 56.9% by 2028.

Nueva Ecija Rep. Mikaela Angela B. Suansing, who heads the House Appropriations Committee, said budget discussions will start on Aug. 18, giving congressmen nearly two months to scrutinize and approve the budget bill before submitting it to the Senate.

“From Aug. 18 to Oct. 10, we will carefully examine the budget,” she told reporters in Filipino. “We will ensure that deliberations for next year’s budget are thorough.” — Kenneth Christiane L. Basilio, Reporter