Graphics by Zean Dellera
Setting the government’s spending priorities for the coming fiscal year, President Ferdinand R. Marcos Jr. has signed into law the ₱6.793-trillion national budget for 2026 at the Malacañang Palace, Monday, January 5.
The spending measure is enacted as Republic Act No. 12314, or the General Appropriations Act (GAA) of 2026, which serves as the government’s primary financial plan for funding programs, projects, and public services.
According to the Department of Budget and Management (DBM) press release last June 2025, the 2026 budget represents a 7.4% increase from the ₱6.326-trillion budget in 2025, with allocations spread across social, economic, and general public services to address inflationary pressures and evolving national priorities.
Education tops all sectors with an allocation of ₱1.345 trillion. The funding is intended to support the construction of around 25,000 classrooms nationwide and the creation of more than 65,000 teaching and non-teaching plantilla positions to help address shortages in public schools.
From the news report of Inquirer and Philippine Star, included in the education budget is ₱185 billion for the maintenance and operations of State Universities and Colleges (SUCs) across the country with additional ₱67 billion is earmarked for the Universal Access to Quality Tertiary Education (UAQTE) program, which supports the implementation of the “free college law” under Republic Act No. 10931 for eligible students in both public and participating private institutions.
The healthcare sector is allocated ₱448.125 billion to further expand the Universal Health Care program including the restoration of ₱60 billion to the Philippine Health Insurance Corporation (PhilHealth), as mandated by the Supreme Court, as well as funding for the implementation of “Zero Balance Billing” for indigent patients in government hospitals.
To strengthen food security and improve agricultural supply chains, the budget sets aside ₱297.102 billion for the agriculture sector where funds will be used for the construction of farm-to-market roads and the modernization of post-harvest facilities to support farmers and fisherfolk.
Social protection programs also receive a significant boost as evident in the budget for the Pantawid Pamilyang Pilipino Program (4Ps) more than doubled to cover 4.4 million beneficiary households.
In addition, ₱270.189 billion is allocated for broader social services aimed at poverty reduction and protecting vulnerable sectors from economic shocks.
As part of efforts to promote fiscal discipline and transparency, President Marcos vetoed ₱92.5 billion in unprogrammed appropriations.
The Palace said the move was intended to curb political patronage and ensure that remaining funds are channeled only to high-impact infrastructure projects and essential public services, subject to digitalized monitoring systems.
With the signing of the 2026 GAA, government agencies are expected to align their programs and expenditures with the priorities outlined in the budget to ensure timely and effective implementation throughout the year.
Sources: Department of Budget and Management (DBM), Inquirer.net, Philippine Star
Article by Niña Mae Marañon