Good morning.
I am honored to meet you all. I have been Acting Secretary for just a little over a month now. To be exact, it is 42 calendar days, including Christmas and New Year. I took my oath before the President last December 9, 2025. And I must say it has been the most hectic 40 days of my life, but it has also been a productive one, given the fact that the General Appropriations Act (GAA) for FY 2026 was passed into law last January 5, in spite of the many controversies the nation faces today.
But I am not new to the process. In fact, I have been with the DBM for 38 years. I started my journey with the DBM as an Accounts Analyst. I was also Undersecretary for the Budget Preparation and Execution Group and Assistant Secretary for the Budget Policy and Strategy Group, which is now being led by Assistant Secretary Romeo Balanquit.
And at the same time, being the Development Budget Coordination Committee (DBCC) Chair, composed of the DBM, DOF, DEPDev, and the Office of the President, and the Bangko Sentral ng Pilipinas as a resource institution. So, I know the DBM and the budget process very well, and I confirm that it is one of the most complex and crucial elements of public administration.
The Budget Cycle
So let me begin by providing an overview of the budget process.
As you know, President Ferdinand R. Marcos Jr. signed the Fiscal Year (FY) 2026 National Budget exactly two weeks ago, on January 5, the first working day of 2026.
The budget process is composed of budget preparation, budget legislation, budget execution, and budget accountability. Specifically, the process begins with the Development Budget Coordination Committee (DBCC) determining the total budget level or aggregate level of the fiscal program for the following year. Upon the DBCC’s approval of the aggregate budget level, the DBM issues the National Budget Call, which we already issued for the preparation of the FY 2027 budget. So, the budget cycle overlaps. While we are implementing the budget for 2026, we are preparing now for 2027.
Budget Preparation
Now, as mentioned, the budget preparation consists of numerous issuances by the DBM. We issue the National Budget Call, followed by the Budget Priorities Framework (BPF). These will guide the agencies on how we will allocate funds in line with the government’s priorities.
Following these documents, we will ask the agencies to submit their budget proposals. The DBM will then evaluate the agency budget proposals against a set of criteria, while ensuring that agencies’ budgets remain within their absorptive capacity and the government’s available fiscal space.
We are given 30 days after the opening of Congress to submit the budget. Normally, that is also 30 days after the State of the Nation Address (SONA).
Budget Legislation
Before we submit to Congress, we need to have the approval of the President and the Cabinet. This is why the National Expenditure Program (NEP) is called the President’s Budget.
Once submitted to Congress, it will be deliberated. They have to prepare the General Appropriations Bill (GAB), which will be submitted to the Senate. That will be the basis for the Senate to review and deliberate on the different Departments’ budget allocations. Given the differences between the Congress’s and the Senate’s versions of the GAB, they will convene for the Bicameral Conference Committee, which was livestreamed last year.
Once the bill has been enrolled, the President will now have to sign the budget for it to become the General Appropriations Act (GAA).
Guiding Principles of the Budget Process
Now, what are the guiding principles of the budget process? We take into consideration three fundamental Public Financial Management (PFM) principles in the preparation and implementation of the National Budget: Fiscal Discipline, Allocative Efficiency, and Operational Efficiency. Together, these principles shape our budget process, ensuring that the National Budget becomes a tool for growth and inclusive development that truly benefits our citizens.
Overview of the FY 2026 National Budget
Let us now discuss in detail the FY 2026 National Budget. This year, our budget amounts to Php 6.793 trillion, equivalent to 22.0 percent of our GDP.
This year, from focusing on infrastructure development through the Build Better More program, we are heightening our prioritization for human capital development. Hence, we are investing in education reform, health protection, food security, social protection, and job creation, among others.
As far as the education sector is concerned, it has been allocated Php 1.34 trillion. This is the largest education budget in Philippine history. Of course, we will now reach UNESCO's global benchmark for education spending for the first time! This budget will help us address the significant learning deficits, gaps in the education workforce, support learning recovery and scholarship programs, and advance quality education for all Filipinos.
The 2026 National Budget also places the health sector at the center of government priorities. With a record-high allocation of Php 448.1 billion1, the government reaffirms its commitment to uphold genuine Universal Health Care for all Filipinos.
Meanwhile, the Agriculture sector will receive Php 297.1 billion to support the expansion of the Rice-for-All Program, modernization of supply systems, and development of farm-to-market roads, among others.
These investments in our people’s right to learn, right to be healthy, and right to food security will be further complemented by allocations for Social Protection, amounting to Php 270.2 billion to safeguard the welfare of all Filipinos, especially the vulnerable and marginalized communities.
Furthermore, the labor and employment sector will receive Php 73.6 billion to enhance employment opportunities, strengthen workers’ protection, and invest in skills development for a more resilient and inclusive workforce.
In a nutshell, we can say that the FY 2026 National Budget is people-centered, placing the highest value on uplifting the lives of Filipinos, with an overriding commitment to nurturing future-ready generations.
Budget Accountability
In terms of budget accountability, we are well aware that we can only achieve real progress if we address the big issues the nation faced over the past year, especially on allegations of corruption. On the part of the DBM, we have taken this as a call to strengthen our Budget Accountability phase in the Budget Cycle. We are responding to this call by improving how we monitor and evaluate implementing agencies in the utilization of the resources entrusted to them.
To strengthen M&E, in 2025, we enhanced our Agency Performance Reviews (APR)—a mechanism that holds government agencies accountable for the physical and financial targets they have committed to achieve. Last October, the DBM launched the Budget ng Bayan Monitor, which summarizes the results of the enhanced FY 2024 APRs and aims to track implementing agencies’ budget utilization more closely, identify bottlenecks, and improve overall agency performance.
We are also leveraging technology to empower citizens in upholding accountability. This year, we relaunched Project DIME, or the Digital Information for Monitoring and Evaluation. This tool harnesses satellites, drones, and geotagging to show real-time project progress on the ground. Additionally, the website features a feedback platform that allows our citizens to share their insights and ensure that every project truly serves its purpose.
To complement this, the DBM is also the first to have adopted public blockchain technology to track government spending. This enables the public to access immutable, real-time records of key budget documents, such as Special Allotment Release Orders (SAROs) and Notices of Cash Allocation (NCAs), so they can see how implementing agencies manage and spend their funds under the GAA.
Reforms
These are just some of our efforts to improve accountability and we are working on more. Hence, I am very optimistic that we will be able to overcome these challenges.
I am even more confident because the DBM already has a track record of successfully eliminating corruption through the institutionalization of proper systems. In 2022, at the beginning of this Administration, we were faced with a call from Congress and civil society to abolish the Procurement Service, or the PS-DBM, because of controversies on overpricing and lack of transparency in acquiring supplies for the government. Instead of losing hope, we studied our systems, and we were able to do the following within just three years: First, we digitalized the entire procurement system, and so we now have the e-marketplace where we can track all sales; Second, we institutionalized anti-corruption measures such as open contracting, disclosure of beneficial ownership, and public participation in the procurement process; and third, we revised the 20-year old government procurement law and passed the New Government Procurement Act.
We are very happy to share that at the Open Government Partnership Global Summit last October in Spain, the Philippines was named No. 1 in the anti-corruption category for our efforts on procurement reform.
We have also been successful in passing the Government Optimization Act. And we are now working on strengthening the budget process by pushing for the Budget Code, formerly known as the Progressive Budgeting for Better and Modernized Governance Act, which we will hopefully be able to pass this year.
As we enter 2026—the year that the Philippines chairs the ASEAN—we assure you that we have every intention of staying on track with our economic targets, and we are determined to continue to be one of the leading economies in Southeast Asia. But even better, this time, we are doing this not just for our generation but also to future-proof our nation for the next generations.
So let us strengthen our partnerships and collaborations. As long as the government, the private sector, and our citizens come together for our nation, I am sure we can make this administration's and our people's dream of a Bagong Pilipinas a reality.
Thank you.
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