The Marcos administration has turned over its proposed P7.2-trillion national budget for 2027 to Congress, launching marathon hearings on the president’s final full-year spending plan.
The Department of Budget and Management (DBM) formally handed over the proposed fiscal plan, which represents a 6 percent increase from this year’s budget and makes up roughly 21.7 percent of the country’s total economic output.
Citing the budget’s central theme, “People-Centered Growth for an Inclusive and Resilient Future,” President Ferdinand Marcos Jr. called the spending plan the government’s “moral and economic compass” aimed at lifting living standards while building long-term stability.
“This reflects our unwavering commitment to building a resilient, inclusive and prosperous nation,” Marcos said in his Budget Message to lawmakers.
DBM Acting Secretary Kim De Leon underscored that the proposed package aims to maximize the impact of taxpayer money. The budget growth will also absorb mandatory state costs, including the fourth round of civilian government pay raises, salary hikes for military and uniformed personnel and higher revenue shares sent to local government units.
In the 2027 NEP, Social services take the largest slice of the pie at P2.456 trillion. The money is slated to cover basic schooling, public healthcare, monthly social aid, job creation and public housing.
Economic services follow with P 1.833 trillion, up by P277.3 billion from this year, to fund roads, bridges, farm modernization and water networks.
Key sectors receiving major funding hikes include:
- Healthcare: The combined health budget reaches P1.06 trillion, raising health spending to 3.19 percent of national economic output (up from 2.68 percent). The funds will cover public hospital operations, free medicines and health insurance subsidies.
- Infrastructure: Infrastructure spending under the “Build Better More” campaign expands to P1.467 trillion, a P178-billion jump over current levels, for railways, highways, ports and flood control.
By constitutional mandate, the education sector receives the largest individual share among executive departments.
The Department of Education is set to receive P976 billion or 13.55 percent of the total budget package, to upgrade primary schools and improve educational quality.
Other top agency allocations in the proposed budget include:
- Public Works and Highways: P644 billion for roads, bridges and civil works.
- Health and PhilHealth: P353.8 billion for public hospitals and medical assistance.
- Interior and Local Government: P332.5 billion for local police and municipal support.
- National Defense: P328.8 billion for military operations and defense upgrades.
- Transportation: P302.2 billion for railways and mass transit systems.
- Agriculture Sector: P261.7 billion for farmer aid, irrigation systems and food security.
- Social Welfare: P241.6 billion for emergency cash relief and social protection.
- Higher Education: P176.5 billion for state universities, colleges and free tuition programs.
- Judiciary: P86.3 billion to run the courts and justice system.
House leaders expect to begin committee-level budget deliberations immediately to pass the spending plan before the end of the year.