MANILA — The Department of Budget and Management (DBM) has formally launched preparations for the 2027 national budget, issuing guidelines that underscore inclusive growth, fiscal discipline, and a stronger role for regions in shaping government spending priorities.
Signed by DBM Secretary Rolando Toledo, National Budget Memorandum (NBM) No. 156 sets the parameters that will guide government agencies in crafting their budget proposals for fiscal year 2027. The budget call aligns planned spending with the midterm update of the Philippine Development Plan (PDP) 2023–2028 and the updated Medium-Term Fiscal Framework (MTFF) 2022–2030, as the government moves into the latter phase of its development agenda.
Toledo said the upcoming budget will be shaped by tighter fiscal conditions and higher expectations for performance, with agencies required to justify how their proposals deliver measurable results.
“Every peso must work harder and reach farther,” Toledo pointed out, adding that the 2027 budget will adhere to President Ferdinand Marcos Jr.’s directive to maintain fiscal discipline while ensuring prudent, transparent, and results-oriented use of public funds.
Budget as a policy instrument
The DBM said the 2027 national budget will play a critical role in translating long-term development goals into fundable programs during the final stretch of PDP implementation. Priority areas include measures to protect household purchasing power, accelerate inclusive and sustainable growth through infrastructure, strengthen climate resilience, expand digital public services, and promote more balanced development across regions, particularly in lagging and disadvantaged local government units (LGUs).
The budget call also reinforces ongoing public financial management reforms, requiring agencies to demonstrate value for money, absorptive capacity, and implementation readiness before projects are cleared for funding.
With fiscal space remaining tight, Toledo said only proposals that are “well-justified, implementation-ready, and aligned with national and regional priorities” will be considered. “Performance and accountability matter,” he said.
Bigger role for regions
A notable feature of the 2027 budget guidelines is the expanded role of Regional Development Councils (RDCs), which will now have greater influence in endorsing priority programs and projects in their respective areas. Under the memorandum, infrastructure and regional proposals must secure RDC endorsement, strengthening coordination among national agencies, regional offices, and LGUs.
Toledo said the move is intended to address long-standing concerns over misaligned or duplicative projects, particularly those that reach LGUs without prior consultation or clear local demand.
By institutionalizing RDC and LGU participation, the DBM said the budget process is expected to become more grounded and responsive, ensuring that national spending decisions better reflect on-the-ground needs while remaining consistent with broader development goals.
Focus on results and accountability
The budget call reiterates the government’s adherence to the Cash Budgeting System, limiting funding to programs and projects that are ready for implementation and backed by credible timelines. Agencies are also directed to strengthen monitoring and evaluation systems to ensure transparency and accountability throughout the budget cycle.
As agencies begin drafting their 2027 proposals, the DBM framed the budget call as both a technical directive and a policy statement.
“This is how we ensure the national budget truly serves the people,” Toledo said, pointing to a spending framework that is disciplined, inclusive, and anchored on local realities.