The Department of Energy (DOE) plans to source nearly two-thirds of its proposed ₱5.58-billion budget for 2027 from automatic appropriations rather than asking Congress for fresh funding, agency officials told lawmakers on Thursday, September 17.
Out of the total proposed allocation, ₱3.55 billion—or 63.6%—will be covered by automatic appropriations fueled by energy-sector revenues. New congressional appropriations will only make up ₱2.03 billion, representing a significant shift from previous years.
“For the first time since 2022… the new appropriations will actually be less,” Senator Pia Cayetano, chairperson of the Senate Committee on Finance subcommittee, noted.
Cayetano added that the adjustement highlights the agency’s growing financial independence.
“Basically, DOE is more self-sustaining than you were in the past,” Cayetano said.
Energy Undersecretary Alexander Bacordo explained that new appropriations will drop by roughly ₱935 million compared to 2026 levels, marking a departure from previous budget cycles where fresh funds formed the bulk of DOE’s spending power.
“In other words, the department’s budgetary requirements will be heavily supported through the SAGF, sourced from the revenues from energy service contracts and other collections of the department,” Bacordo said.
This budgetary shift is made possible by a projected surge in DOE revenue, which is expected to climb to approximately ₱23 billion in 2027 from ₱6.06 billion this year.
The sharp rise is primarily driven by a rebound in Malampaya Gas Fund collections, which are forecasted to jump to ₱20.01 billion next year from ₱4.22 billion in 2026.
Energy Secretary Sharon Garin indicated that the upward trend in collections could extend further into the future.
“And in fact, ’28 will likely go up because of the new discovery,” Garin said.
The optimistic forecast follows new indigenous gas finds at the Malampaya East-1 and Camago-3 wells, which hold an estimated 222 billion cubic feet of natural gas reserves. According to the DOE, these discoveries could push field production until 2034 while bolstering domestic energy security.
Even with lower requests for new congressional funding, the DOE’s total proposed budget will grow by 25.7% from ₱4.43 billion this year to ₱5.58 billion in 2027. The increase reflects the jump in automatic appropriations, which will expand from 33.17% of the total budget this year to 63.62% next year.
Officials emphasized that overall energy collections routinely outpace the department’s yearly budget. The expanded revenue stream will cover key initiatives in electrification, energy security, resource management, and digital transformation while lowering dependence on national tax revenue.