The national government plans to borrow ₱1.7 trillion next year to bridge a projected revenue shortfall, following the submission of the ₱7.2-trillion National Expenditure Program (NEP) for 2027.
Speaking during the formal turnover of the proposed budget, Acting Budget Secretary Kim Robert de Leon explained that expected tax collections and state revenues will not cover the full expenditure package set by the Development Budget Coordination Committee (DBCC).
“Ang ating estimated revenue naman ay naka-peg sa ₱5.2 trillion na inaprubahan ng DBCC, kaya ang kaukulang resulting budget deficit ay ₱1.7 trillion, which will be financed through borrowings,” De Leon said.
The budget chief clarified that actual spending will likely fall below the ₱7.2-trillion ceiling due to operational adjustments and implementation timeframes throughout the fiscal year.
“Hindi naman ito full disbursement within the year dahil meron tayong variances during the implementation,” De Leon added. “So, ang ating inaprubahang fiscal program for 2027 ang ating total disbursement out of the ₱7.2 trillion budget is about ₱6.9 trillion ang ating estimated cash disbursement for next year.”
With projected disbursements hovering around ₱6.9 trillion, the planned ₱1.7-trillion borrowing program will finance roughly 25 percent of actual government cash outlays for 2027.
De Leon emphasized that the treasury will continue to rely heavily on local financial markets and domestic lenders to meet its funding needs.