At P6.793 trillion, the proposed national budget for FY 2026 is 7.4% higher compared to the P6.326 trillion in 2025, and comprises 22% of the projected gross domestic product (GDP). Anchored on the theme “Agenda for Prosperity: Nurturing Future-Ready Generations to Achieve the Full Potential of the Nation” the FY 2026 National Budget is also aligned with the goals in the Philippine Development Plan (PDP) 2023 to 2028, the President’s 8-Point Socioeconomic Agenda, and the Bagong Pilipinas governance framework.
In recent years, the government has slowly shifted away from rapid fiscal consolidation by increasing government spending in response to weaker growth prospects and the increasing vulnerabilities of the economy from external headwinds. Amid the expansionary fiscal stance, the allocation of the national budget calls for prudent expenditure management by prioritizing and sustaining public investments in human capital development (i.e., education, health, social protection), and infrastructure. Congress indeed plays a central role in ensuring the national budget is aligned with the principles of fiscal discipline, allocative efficiency, and operational efficiency.