The Department of Budget and Management (DBM) formally submitted to Congress the proposed P7.2-trillion fiscal year 2027 national budget.

Anchored on the theme “People-Centered Growth for an Inclusive and Resilient Future,” the proposed national budget is equivalent to around 21.7 percent of gross domestic product (GDP) and is six percent higher than the FY 2026 budget.

A significant portion of the increase reflects mandatory funding requirements and existing government commitments, including the higher National Tax Allotment (NTA) for local government units, the fourth tranche of salary adjustments for civilian government employees under Executive Order No. 64, corresponding salary adjustments for military and uniformed personnel, and other fiscal obligations.

“Our national budget serves as our moral and economic compass. It must always point toward making life better for our people. This reflects our unwavering commitment to building a resilient, inclusive, and prosperous nation… It is a strategic investment in the Filipino people and in our country’s future,” President Ferdinand Marcos Jr. said in his budget message.

Social services receives the largest share of the proposed budget at P2.456 trillion, providing substantial resources for education, health care, social protection, employment, housing, and other programs that directly support Filipino families.

Basic education, through the Department of Education (DepEd), receives the largest allocation among departments at P976 billion, equivalent to 13.55 percent of the total proposed budget

It is followed by:

Public Works — P644 billion, mainly for roads, bridges, and other infrastructure;

Health (DOH, Specialty Hospitals, and PhilHealth) — P353.8 billion, for hospitals, health services, and major health programs;

Interior and Local Government— P332.5 billion, supporting public safety and local governments;

National Defense — P328.8 billion, including military modernization and operations;

Transportation (DOTr, PNR, and LRTA) — P302.2 billion, supporting railways and public transportation;

Agriculture (DA, DAR, NIA, NDA, NFA, NTA, PCA, PCIC, PFDA, PRRI, SRA) — P261.7 billion, supporting farmers, irrigation, agrarian reform, food security, and related programs;

Social Welfare (DSWD) — P241.6 billion, primarily for social protection and assistance programs;

Higher Education (SUCs and CHED) — P176.5 billion, including free tuition and scholarships; and

Judiciary — P86.3 billion, supporting the country’s courts and justice system.

The proposed FY 2027 budget also marks a significant move toward more programmed, predictable, and transparent government spending, with Unprogrammed Appropriations (UA) kept at a historic low.

At only P111.984 billion, the proposed UA is the lowest at the NEP level since 2019. It represents just 1.6 percent of the Total Expenditure Program (TEP)—the lowest UA-to-TEP ratio since 1991.

Tthe proposed UA is limited to clearly defined and necessary purposes: primarily to restore the fund balance remitted by the Philippine Deposit Insurance Corporation (PDIC) in 2024 and to provide funding cover for Foreign-Assisted Projects, subject to the stringent conditions prescribed by law.

The turnover formally places the proposed FY 2027 National Budget before Congress, where lawmakers will scrutinize the government’s spending priorities and proposed appropriations as part of the constitutional budget process. Department of Budget and Management