To the American Chamber of Commerce of the Philippines, led by its Executive Director, Mr. Ebb Hinchliffe;
Canadian Chamber of Commerce of the Philippines, headed by its President, Mr. Christopher Ilagan;
My colleagues in the National Government, development partners, and distinguished leaders and members of the business community;
A pleasant afternoon to everyone! Magandang hapon po sa inyong lahat!
First, I would like to thank the organizers for inviting the Department of Budget and Management (DBM) to this year’s AmCham Economic Briefing to discuss the country’s strategic budget priorities under the Fiscal Year (FY) 2026 National Budget.
Thank you for the opportunity to speak on the FY 2026 National Budget and our economic agenda in these final two and a half years of this administration.
In the beginning of this administration, we were just emerging from the pandemic. Hence, our goal was to jump back to pre-pandemic growth levels. I am proud to share that we already achieved this. Through our aggressive Build Better More program, in 2022, we reached 7.6 percent growth, the highest growth rate for the Philippines, not just post-pandemic but in 20 years. We continued our economic agenda, and while Vietnam has surpassed our growth, the Philippines remains one of the fastest-growing economies in Southeast Asia to this day.
In fact, despite geopolitical and economic headwinds, the Philippine economy remains resilient, expanding by 4.0 percent in the third quarter of 2025.
Following our mid-term mark, we are now focusing on sustainability. Hence, aside from infrastructure development, we now shift into high gear to prioritize human capital development.
This year, our goal is crystal clear. That is, to nurture future-ready generations, restore our people’s trust in our institutions, and ultimately, foster a future-forward Philippines—a mission we are proud to carry forward together with our partners in the business community.
Hence, I hope that through our presentations today, we can enhance our collective understanding of the country’s budget and identify future investments and priorities aligned with the needs of every Filipino and the nation as a whole.
I also hope that we can learn from each other and align our efforts to ensure that the country’s programs and interventions, across the administration’s priority sectors, are implemented efficiently, fairly, and effectively.
Overview of FY 2026 National Budget
Now, let me provide you with the overview of the national budget for FY 2026 as well as key priorities and reforms that will yield long-term benefits for our governance and development agenda.
The FY 2026 National Budget, amounting to Php 6.793 trillion and equivalent to 22.0 percent of our GDP, invests in key priority sectors. These are education reform, infrastructure development, health protection, food security, and social protection, among others. Indeed, it is the cleanest budget in the country’s history, crafted through a transparent process and a clear intention to serve the people.
Education
Determined to address the learning crisis, we have invested a total of Php. 1.34 trillion in Education—the largest education budget in Philippine history, which for the first time meets UNESCO's global benchmark of 4% of GDP for education spending. This was an initiative of the DBM, and we are thankful that Congress not only supported this but even added to the Education sector budget.
Of this amount, Php 1.015 trillion is allocated to the Department of Education (DepEd) to create more than 65,000 teaching and non-teaching positions and build 24,000 classrooms, with allocations of Php 15.4 billion and Php 85.4 billion, respectively.
We are also supporting the Academic Recovery and Accessible Learning or ARAL Program with Php 9 billion to address significant learning gaps and advance quality education for all Filipinos. This will be complemented by the School-Based Feeding Program (SBFP) with a budget of Php 25.7 billion, which will address malnutrition and stunting, and improve school participation of over four (4) million learners nationwide.
Through our record-high budget allocation for Education, we are building the foundation of a highly-skilled workforce that will drive innovation and productivity in a competitive global economy.
Infrastructure
Following DepEd in the top departments with the highest allocations for 2026 is the Department of Public Works and Highways, with Php 530.9 billion, underscoring the government’s commitment to building high-impact infrastructure that supports economic growth, regional development, and disaster preparedness.
We cannot ignore the controversies surrounding some of the country's flood control projects, but while Congress and the Ombudsman attend to that, with our support, we remain steadfast in our duty to carry on and ensure continuity in our nation's infrastructure development.
Hence, I am pleased to share, especially as we prepare to chair ASEAN 2026, that we are moving full speed ahead with our Network Development Program with an allocation of Php 87.6 billion, our Bridge Program with Php 31.04 billion, and the Public-Private Partnership Strategic Support Fund, which will receive Php 1 billion to help accelerate priority infrastructure projects across the country.
Health
Likewise, the health sector has secured an unprecedented allocation of Php 448.1 billion. This budget will strengthen universal healthcare, improve our hospitals, and expand PhilHealth subsidies, ensuring that every Filipino has access to quality, affordable medical services nationwide.
Specifically, the Medical Assistance for Indigent and Financially Incapacitated Patients (MAIFIP) under the Department of Health (DOH) is allocated Php 51.6 billion to reduce out-of-pocket medical expenses for our citizens. The DOH will also pilot the Zero Balance Billing Program in secondary and tertiary LGU hospitals to increase healthcare access, especially for indigent Filipinos, underlining our commitment to a people-centered budget.
Additionally, the Health Facilities Enhancement Program is allotted Php 22.2 billion for the construction of Bagong Pilipinas Health Centers or Rural Health Units, the completion of Super Health Centers, and the upgrading or repair of clinics, further improving patient safety and care quality for all.
To complement this, Philhealth is allocated Php 129.8 billion. This fund seeks to expand health benefit packages, allowing Filipinos to safeguard their well-being without fear of financial strain. Afterall, when we invest in the health of our people, we also lay the groundwork for a healthy economy.
Agriculture
To strengthen food security and uplift the lives of our farmers and fisherfolk, we have allocated Php 297.1 billion to the Agriculture Sector. Key investments include Php 30 billion for the Rice Competitiveness Enhancement Fund to boost farm productivity and mechanization; Php 33 billion for farm-to-market roads; and Php 10 billion for the Rice-for-All Program to expand the availability of P20 rice to provinces nationwide.
By modernizing agriculture and improving rural infrastructure, we are not only stabilizing food prices but also promoting rural development, both of which are essential to achieving economic growth.
Social Protection
Beyond ensuring access to food, education, and health services, the FY 2026 National Budget also prioritizes social protection for the marginalized and most vulnerable sectors, allocating Php 270.2 billion for programs that provide timely assistance, reduce poverty, and build human capital.
A significant portion of this budget will support the Pantawid Pamilyang Pilipino Program or 4Ps with Php 113 billion allocation; the Assistance to Individuals in Crisis Situations or AICS with Php 63.9 billion; the Social Pension Program for Indigent Senior Citizens with Php 51.9 billion; and the Quick Response Fund with Php 3 billion.
At its core, the FY 2026 National Budget demonstrates our resolve to leave no Filipino behind, by providing the services they need, the protection they deserve, and the empowerment to contribute to our shared national development goals. But the National Budget can only fulfill these promises if it is implemented efficiently, effectively, and with full accountability.
So, as the agency leading the country’s expenditure management, we reaffirm our commitment to ensuring that our government’s resources translate into meaningful outcomes for our people. This is why the DBM is working hard on budget reforms, and prioritizing digitalization efforts, among other initiatives towards efficiency and accountability.
PFM Reforms Roadmap
We are determined to fully digitalize and harmonize our Public Financial Management (PFM) systems and policies, through the adoption of the Integrated Financial Management Information System (IFMIS) across all government agencies. We launched its interoperable core, the Budget and Treasury Management System (BTMS), in 2024 and even piloted it with seven agencies in 2025. This year, we are expanding its reach to 155 NGAs to ultimately accelerate government transactions, reduce red tape, and make it easier to do business in the country.
Central to this effort is the Public Financial Management (PFM) Reforms Roadmap 2024–2028, which serves as our blueprint for our PFM digitalization. Since its launch in 2024, we have already established a clear medium-term vision for our reform agenda and conducted the Public Expenditure and Financial Accountability or PEFA++ Assessments.
Most recently, in December 2025, we convened a high-level validation workshop for the midterm review of the Roadmap to ensure its alignment with our evolving PFM landscape and the PEFA results, which included, for the first time, an assessment of the climate responsiveness, disaster resilience, gender responsiveness, and child responsiveness of our PFM systems.
Project DIME
Further to ensuring that the budget is responsive, we have revived our Project DIME, or the Digital Information for Monitoring and Evaluation. This tool empowers our people to hold implementing agencies accountable for the infrastructure projects they have committed to deliver by providing a platform where citizens can check the progress of these projects and provide feedback to verify the accuracy of reported data.
You can actually individually participate in this by using your cellphone. This Project DIME uses technology, such as geotagging and drones.
Through our partnership with UP-NOAH, we also launched its Flood Control Project component last October 2025 as an initiative of the DBM to help in the investigations of corruption allegations in government-funded infrastructure projects and to ensure that not a single peso is wasted on ghost or anomalous flood control programs.
Procurement Reforms
Another landmark reform that capitalizes on digitalization is the New Government Procurement Act (NGPA)—hailed as the biggest anti-corruption law in our country’s history. The DBM initiated this reform together with the Government Procurement Policy Board, which the DBM chairs, and since its enactment in 2024, we have already made significant strides in making our procurement more transparent, accountable, and participatory.
At the same time, we modernized the Philippine Government Electronic Procurement System (PhilGEPS), which features a Virtual Store, an e-Marketplace just like Shopee, and an Open Data Portal that promotes public monitoring of government procurement activities. Additionally, the law institutionalizes anti-corruption measures such as open contracting, disclosure of beneficial ownership, and public participation, ensuring fair competition for businesses and enhancing the delivery of public services.
With these transparency measures, I am proud to share that the NGPA was recognized as a global model of anti-corruption reform in Asia at the Open Government Partnership (OGP) Summit last October in Spain.
Aside from the NGPA, we have also successfully passed the Government Optimization Act, which aims to build a streamlined bureaucracy that minimizes redundancies, reduces unnecessary delays, and simplifies government processes, thereby making it easier to do business in the country.
Indeed, we have come a long way in reforming our systems to better serve our people. But as we aspire to become a global leader in open governance and fiscal transparency, we recognize that there is still much more to be done. Marami pa tayong gagawin.
To maintain our position as the leading country for budget transparency in Asia and for budget participation in Southeast Asia—we currently stand at No. 1 for fiscal transparency in Asia and No. 1 also for public participation in Southeast Asia based on the latest Open Budget Survey—we are actively advocating for the passage of the Right to Information law, which will enshrine every Filipino’s constitutional right to access information, as well as the Philippine Budgeting Code, which will expedite the digitalization of our PFM systems.
Closing
As we pursue these reforms and set the stage for ASEAN 2026, we look forward to strengthening our partnerships that will certainly drive and support initiatives towards achieving a future-forward region.
Together, let us nurture future-ready generations and through our partnership, achieve the full potential of our nation— a Bagong Pilipinas grounded on shared responsibility and sustained progress—to uplift the lives of all Filipinos.
Thank you very much, and good afternoon once again.
END
