‘P107b for flood control, P10b for confidential funds in 2027 budget’

Guided by the theme “People-Centered Growth for an Inclusive and Resilient Future,” the proposed 2027 National Budget amounts to 21.7% of GDP and represents a 6% increase from the 2026 budget. (Courtesy: Department of Budget and Management)

President Ferdinand Marcos Jr. on Tuesday submitted to Congress the proposed P7.2 trillion national budget for 2027, which is about six percent higher than this year’s P6.7 trillion spending outlay.

The proposed 2027 budget covers P107 billion for flood control—less than a third of the P350 billion allocated in 2025 but up from this year’s zero funding—as well as over P10 billion for confidential and intelligence funds.

According to the Department of Budget and Management, the proposed national budget is equivalent to around 21.7 percent of gross domestic product (GDP).

A significant portion of the increase reflects mandatory funding requirements and existing government commitments, including the higher National Tax Allotment (NTA) for local government units, the fourth tranche of salary adjustments for civilian government employees under Executive Order No. 64, corresponding salary adjustments for military and uniformed personnel, and other fiscal obligations.

“We crafted a budget that prioritizes education, health, social protection, food security, infrastructure, digitalization, and disaster resilience, while remaining consistent with fiscal responsibility. The goal is to spend strategically where public funds can create the greatest and most lasting impact for every Filipino,” DBM Acting Secretary Kim De Leon said during the turnover ceremony on Tuesday.

“Now that this proposed budget is with Congress, it is our duty to ensure that the goals of this measure will remain until the final version of the General Appropriations bill. We will carefully do our jobs. We will inquire. We will listen. And we will make sure there is transparency in every step of the process,” Speaker Faustino Dy said.

As for the flood control projects for 2027, the Budget chief said these have been “strictly vetted” to ensure there will be no “ghost projects.”

“We ensured these are properly identified and the locations are properly tagged so these do not become ghost flood control projects once these are approved by Congress,” De Leon said.

“From appropriations to release, these will be made public and their implementation will be closely monitored through the transparency portal of the DPWH,” he added.

For the confidential funds, De Leon said: “We wish to reiterate that the use of confidential and intelligence funds remains subject to existing budgeting, utilization, liquidation, and auditing rules to ensure accountability and that the funds are used solely for their intended purposes.”

President Marcos described the budget proposal as a fiscally responsible investment aimed at sustaining economic growth while strengthening infrastructure, food and energy security, social protection and public services.

“More than a financial plan, it is a strategic investment in the Filipino people and in our country’s future,” Mr. Marcos said in his message to Congress.

The President said he directed government agencies to “ensure that every peso produces meaningful and lasting value” during the crafting of the proposal.

“By emphasizing measurable outcomes, institutional reforms, and long-term value creation, the proposed FY 2027 National Budget serves as a catalyst for sustainable and inclusive national development,” the chief executive said.

Based on the proposed budget, social Services will receive the largest share at P2.456 trillion, providing substantial resources for education, health care, social protection, employment, housing, and other programs that directly support Filipino families.

This will be followed by economic services at P1.833 trillion, an increase of P277.3 billion from the current year, to sustain investments in infrastructure, agriculture, transportation, water resources development, and other programs that create jobs, improve connectivity, strengthen productivity, and expand economic opportunities.

Department of Budget and Management (DBM) Secretary Kim Robert de Leon submits the proposed P7.2-trillion National Expenditure Program (NEP) of the government to the leaders of the 20th Congress on August 11, 2026. The DBM transmitted copies of the 2027 NEP to the Senate in the presence of Senate President Sherwin Gatchalian, Committee on Finance chairman Joseph Victor ‘JV’ Ejercito, and Majority Leader Juan Miguel ‘Migz’ Zubiri. It was also delivered to the House of Representatives led by Speaker Faustino ‘Bojie’ Dy III earlier. (Courtesy: House of Representatives / DBM) 

The consolidated health sector budget reaches P1.06 trillion, bringing the health-to-GDP ratio to 3.19 percent, from 2.68 percent in the current year.

Infrastructure investment, meanwhile, is proposed at P1.467 trillion, equivalent to 4.4 percent of GDP and P178.0 billion higher than this year’s budget level.

Basic education, through the Department of Education (DepEd), will receive the largest allocation among departments at P976 billion, equivalent to 13.55 percent of the total proposed budget.

It is followed by:

• Public Works (DPWH) — P644.0 billion, mainly for roads, bridges, and other infrastructure;
• Health (DOH, Specialty Hospitals, and PhilHealth) — P353.8 billion, for hospitals, health services, and major health programs;
• Interior and Local Government (DILG) — P332.5 billion, supporting public safety and local governments;
• National Defense (DND) — P328.8 billion, including military modernization and operations;
• Transportation (DOTr, PNR, and LRTA) — P302.2 billion, supporting railways and public transportation;
• Agriculture — P261.7 billion, supporting farmers, irrigation, agrarian reform, food security, and related programs;
• Social Welfare (DSWD) — P241.6 billion, primarily for social protection and assistance programs;
• Higher Education (SUCs and CHED) — P176.5 billion, including free tuition and scholarships; and;
• Judiciary — P86.3 billion, supporting the country’s courts and justice system.

The proposed FY 2027 budget also marks a significant move toward more programmed, predictable, and transparent government spending, with Unprogrammed Appropriations (UA) kept at a historic low, the DBM said.

At only P111.984 billion, the proposed UA is the lowest at the NEP level since 2019, and is limited to clearly defined and necessary purposes: primarily to restore the fund balance remitted by the Philippine Deposit Insurance Corporation (PDIC) in 2024 and to provide funding cover for Foreign-Assisted Projects, subject to the stringent conditions prescribed by law. — Charles Dantes