President Ferdinand R. Marcos Jr. on Monday received the proposed ₱6.793-trillion National Expenditure Program (NEP) for 2026 from the Department of Budget and Management (DBM), with transmittal to the House of Representatives set for today.
The spending plan, 7.4% higher than this year’s ₱6.326 trillion budget, was formally handed to Marcos by Budget Secretary Amenah Pangandaman during a ceremony in Malacañang. Marcos had already approved the program last month.
According to the Presidential Communications Office, the 2026 NEP will prioritize core services that “uphold fundamental rights” — including quality and accessible education, stronger health systems, expanded social protection, and food security.
The President’s top 10 priority sectors are education, public works, health, defense, interior and local government, agriculture, social welfare, transportation, judiciary, and labor and employment.
By expense class, the largest allocation — ₱2.639 trillion — will go to maintenance and other operating expenses (MOOE) to sustain the implementation of government programs and projects. Personnel services will get ₱1.908 trillion for salaries and benefits of government workers, including funding for new and filled positions.
Capital outlays are set at ₱1.296 trillion to finance priority infrastructure, while ₱950 billion is earmarked for financial expenses.
Of the total budget, ₱4.305 trillion (63.4%) will go to national government agencies. Local governments will receive ₱1.350 trillion, or nearly 20%, excluding projects implemented locally but funded by national agencies. Government-owned or -controlled corporations will get ₱188.3 billion in subsidies, equity support, and net lending.
Also yesterday, lawmakers presented to Marcos the signed Government Optimization Act (Republic Act No. 12231), aimed at streamlining government operations, improving service delivery, and eliminating overlapping functions. Signed into law on August 4, it authorizes the President to optimize the operations of executive branch agencies.