DBM submits record-high ₱7.2-T proposed 2027 national budget to Marcos

Courtesy: Presidential Communications Office

The Marcos administration is seeking a record-breaking ₱7.2-trillion national budget for Fiscal Year 2027 to push for human capital development and infrastructure scaling despite a tight fiscal landscape. The proposed spending plan was formally submitted as the National Expenditure Program (NEP) to President Ferdinand "Bongbong" Marcos Jr. at Malacañan Palace on Monday, August 10, 2026, by Department of Budget and Management (DBM) Acting Secretary Kim Robert C. de Leon.

Key Fiscal Metrics

• Total Proposed Amount: ₱7.2 trillion, marking the largest budget in Philippine history.
• Year-on-Year Growth: An increase of ₱407 billion (6%) compared to the enacted ₱6.793-trillion budget for 2026.
• Economic Share: The allocation accounts for 21.7% of the Philippines' projected Gross Domestic Product (GDP).
• Medium-Term Framework: Aligns with macro targets projecting a real GDP growth of 5% to 6% and an inflation rate of 4% to 5% for 2027.

Core Spending Priorities

Carrying the official theme "People-Centered Growth for an Inclusive and Resilient Future," Palace Press Officer Claire Castro announced that the executive's spending framework targets the following sectors:

• Human Capital Development: Direct expansion of quality education, funding for the Academic Recovery and Accessible Learning (ARAL) Program, and strengthening the Universal Health Care system.
• Economic Foundations & Food Security: Allocation boosts for climate-resilient agriculture, social protection programs, and livelihood security.
• Infrastructure & Digitalization: Continued funding for Infrastructure Flagship Projects and accelerated digital government services.
• Local Governance: Disaster preparedness resources and targeted aid for low-income, disadvantaged Local Government Units (LGUs).

Addressing a Tight Fiscal Space

The DBM noted that drafting the 2027 fiscal plan required strict budget discipline due to constrained resources. A large portion of government revenue is automatically tied up in mandatory expenditures, such as LGUs' National Tax Allotment shares, debt interest payments, and legal obligations under recently enacted laws. To maximize public funds, the administration enforced a rigorous selection process, reviewing and funding only project proposals fully vetted within the designated budget preparation period.

Next Steps in the Legislative Process

Following the President’s review, the executive branch will officially transmit the 2027 NEP to the House of Representatives on Tuesday, August 11, 2026. This transmittal kicks off committee-level budget deliberations. The DBM has scheduled a formal press briefing at Malacañan at 1:00 PM on Tuesday to disclose granular agency allocations and specific sector breakdowns.