Metro Manila, Philippines – The Marcos administration is proposing a ₱7.2-trillion national budget for 2027, with infrastructure, flagship projects and key development programs at front and center as the government seeks to sustain economic growth despite fiscal constraints.
The proposed budget totals ₱7.2002 trillion, or 21.7% of gross domestic product, representing a 6 percent increase from the current budget of ₱6.7932 trillion, according to National Budget Memorandum 158 issued by the Department of Budget and Management (DBM).
In a text message to NewsWatch Plus, Budget Secretary Kim De Leon clarified that only the overall budget ceiling has been approved and that agencies’ funding allocations are still being finalized.
“What was approved is the budget level for 2027. We are still in the process of preparing the details coming from the proposals of agencies,” De Leon said.
The memorandum stated that the 2027 spending plan will focus on programs, activities and projects that create more opportunities for Filipinos while building a “more resilient and secure future for all.”
To maximize the economic impact of public spending, the government said it will prioritize pre-construction activities, counterpart funding for foreign-assisted projects and the remaining financing needed to accelerate the completion of ongoing flagship infrastructure projects.
The DBM said agencies seeking funding for new and expanded programs must first secure approval from the appropriate oversight bodies before their proposals are considered for inclusion in the national budget. Budget allocations will also take into account agencies’ implementation readiness and absorptive capacity to ensure projects can be carried out efficiently.
The memorandum acknowledged that the government is preparing the 2027 budget under a “very narrow fiscal space,” citing funding pressures from automatically appropriated expenditures such as local government tax allotments, interest payments, newly enacted laws and other recurring mandatory expenses.
As a result, the government said it conducted a careful review of agency budget proposals to free up more resources for productive and high-impact expenditures.
The budget framework also underscored the importance of infrastructure spending in supporting economic growth after public construction slowed in 2025.
The DBM said infrastructure and other capital outlays fell ₱253.8 billion short of program due to concerns over alleged anomalies involving flood control projects, contributing to lower overall government disbursements.
