President Marcos signs national budget for 2026 | Photo via Prsidential Communications Office
MANILA, PH — President Ferdinand Marcos Jr. on Monday signed into law the ₱6.793‑trillion national budget for 2026, the largest in Philippine history, framing it as a turning point for governance reforms after a year marked by corruption scandals, climate disasters, and economic uncertainty. The signing took place at Malacañang Palace, where the President also announced the veto of ₱92.5 billion in unprogrammed appropriations, citing the need for fiscal discipline and transparency.
“This year tested our nation on many fronts,” Marcos said during the ceremony. “We experienced climate‑related disruptions, earthquakes, economic uncertainty, and the exposure of widespread corruption within our system. These challenges are painful, but they also made one thing clear: real change could no longer wait”.
The 2026 General Appropriations Act (GAA), or Republic Act 12314, is the first national budget to explicitly bar elected officials from participating in the distribution of financial assistance, a provision the administration says is meant to prevent political patronage and restore public trust following the flood‑control corruption controversy that dominated 2025.
“The distribution of financial and other forms of aid shall reach those it is meant to serve and will not be used for political patronage,” Marcos said, emphasizing that the new restrictions “will ensure that support reaches the intended beneficiaries without patronage”.
Largest Budget in History, With Education and Health as Top Recipients
The 2026 budget allocates:
- ₱1.345 trillion for education, the highest share, covering new plantilla positions, teacher promotions, and nationwide classroom construction.
- ₱448.125 billion for health, the largest in Philippine history, including funding for universal healthcare, disease surveillance, and rapid response systems.
- ₱297.102 billion for agriculture, aimed at modernizing supply chains and expanding farm‑to‑market roads.
- ₱270.189 billion for social services, with the administration targeting a single‑digit poverty rate by 2028.
Marcos said the spending plan “shall sustain our momentum in education reform, in health protection, in food security, in social security, and in job creation”.
Acting Budget Secretary Rolando Toledo described the GAA as “the Filipino people’s budget,” saying: “With the signing of the 2026 GAA into law, we are guaranteeing investments that will turn into tangible results and ultimately uplift the lives of our people”.
Vetoed Funds and the Push for Fiscal Discipline
The President’s veto of ₱92.5 billion in unprogrammed appropriations—funds that can only be released if additional revenues materialize—was one of the most closely watched aspects of the signing.
Marcos said the veto was intended to “prevent premature spending commitments” and ensure that expenditures remain aligned with realistic revenue projections.
Toledo defended the move, saying the administration was “cleaning” the budget: “Unprogrammed appropriations should not become a shortcut or backdoor to spending public funds”.
The veto brings total unprogrammed funds down to ₱150.9 billion, the lowest level since 2019.
Dissenting Voices: “Still Pork, Just in Pieces”
While the budget passed both chambers of Congress, several lawmakers refused to sign off on the final version, citing concerns over alleged “pork variations” and insufficient safeguards.
Some legislators argued that the budget still contained “grilled pork” or discretionary funds “in bits and pieces,” pointing to allocations they said lacked transparency or clear implementing guidelines.
Others criticized the retention of endorsement‑based access to assistance programs, despite the new prohibition on political involvement in aid distribution. As one lawmaker noted during deliberations, “There is no substantial allocation for genuine agrarian reform or national industrialization,” adding that the budget “continues to favor political allies through hidden insertions”.
Executive Secretary Ralph Recto rejected these claims, insisting the budget was “pork barrel‑free” and that legislators “cannot interfere in the execution of the budget,” which he described as “purely an executive function”.
Context: A Budget Signed Under Public Scrutiny
The signing comes after months of public outrage over the multibillion‑peso flood‑control scandal, which led to the resignation of former Budget Secretary Amenah Pangandaman and the unprecedented livestreaming of the Bicameral Conference Committee proceedings.
Marcos acknowledged the public’s doubts: “To our countrymen, we feel your concerns over the previous budget. I am with you in the desire to ensure that every peso from taxes will go to the right projects and the needs of the people”.
A Pledge for Reform
As he concluded his remarks, Marcos framed the 2026 budget as a foundation for rebuilding trust.
“Let us take this opportunity to start moving forward with difficult but needed reforms in governance, to rebuild our trust… and deliver an honest and effective government to the Filipinos,” he said.
