Manila – President Ferdinand R. Marcos Jr. on August 11 submitted a proposed PHP7.2 trillion national budget for 2027 to Congress, describing it as a "prudent investment focused on the future" that will sustain economic growth while maintaining fiscal responsibility.

In his budget message to the 20th Congress, Marcos said the spending plan, up 6% from this year's PHP6.793 trillion budget, was designed to strengthen the country's ability to respond to global challenges while pursuing what he called resilient growth.

"Amid continuing global uncertainties, including geopolitical tensions, persistent inflationary pressures, and volatile energy prices, we remain steadfast in pursuing growth that is both resilient and fiscally responsible," PBBM said.

The proposed budget, equivalent to 21.7% of gross domestic product, comes as the government projects a PHP1.69 trillion deficit for 2027, or roughly 5.1 percent of GDP. It also follows first quarter GDP growth of just 2.8% this year, the slowest pace in five years, which led economic managers to lower their growth targets for 2027 and beyond.

The submission also comes against the backdrop of an ongoing flood control corruption probe that has exposed alleged collusion among executive officials, lawmakers, and contractors over infrastructure funds. DBM Secretary Kim Robert de Leon has said agency proposals underwent one of the toughest vetting processes in recent years partly in response to the scandal.

Some fiscal officials have voiced concern about what happens to the budget once it reaches Congress. Former finance secretary Benjamin Diokno, now a member of the Monetary Board, said lawmakers have in past years expanded the executive's proposed budget during deliberations, which he described as a source of corruption. 

He specifically flagged the Local Government Support Fund as a program that has functioned like pork barrel spending, and urged Marcos to use his line item veto power to keep the final budget clean.

Marcos noted that the final NEP was lower than the PHP11.69 trillion in total funding requests initially submitted by government agencies, saying he had directed agencies to focus on measurable outcomes and eliminate inefficient spending.

"Throughout the budget preparation process, I directed all agencies to focus on measurable outcomes, align their proposals with our development agenda, eliminate unnecessary or inefficient expenditures, and ensure that every peso produces meaningful and lasting value," the President said.

The President said the budget remains anchored on the Philippine Development Plan 2023 to 2028 and Ambisyon Natin 2040, framing it as part of broader institutional reforms rather than simply funding existing programs.

"Beyond funding government programs, this budget seeks to modernize public institutions, improve productivity, strengthen competitiveness, attract greater investments, create quality jobs, and enhance the government's ability to deliver faster, more responsive, and citizen centered public services," he said.

The proposal now heads to the House of Representatives, where Speaker Bodjie Dy III has said lawmakers will subject it to rigorous scrutiny before drafting the General Appropriations Bill. 

It is Marcos's last full budget submission before the 2028 elections.

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