The Department of Budget and Management (DBM) has submitted a proposed P7.2-trillion national budget for 2027 to Congress, putting education, health, social protection, food security, infrastructure and job creation at the center of the Marcos administration’s final full-year spending plan.
The proposed 2027 National Expenditure Program (NEP) is six-percent higher than this year’s budget and is equivalent to about 21.7 percent of gross domestic product (GDP). It will now undergo congressional scrutiny before being enacted into law.
DBM said a significant part of the increase will go toward mandatory requirements and existing government commitments, including a higher National Tax Allotment for local governments, the fourth tranche of salary increases for civilian government employees under Executive Order No. 64, corresponding adjustments for military and uniformed personnel, and other fiscal obligations.
“Our national budget serves as our moral and economic compass. It must always point toward making life better for our people,” President Ferdinand Marcos, Jr. said in his Budget Message.
The proposed budget is anchored on the theme “People-Centered Growth for an Inclusive and Resilient Future.”
Education, social services lead spending
Social Services will receive the largest sectoral allocation at P2.456 trillion, funding education, health care, social protection, employment, housing and other programs directly supporting Filipino households.
Economic Services will receive P1.833 trillion, or P277.3 billion more than the current year. The allocation will support infrastructure, agriculture, transportation, water resources and other initiatives intended to create jobs and expand economic opportunities.
Education remains the government’s biggest departmental priority. The Department of Education (DepEd) is set to receive P976 billion, or 13.55 percent of the proposed national budget.
Other major allocations include P644 billion for the Department of Public Works and Highways (DPWH); P353.8 billion for the health sector, including the Department of Health (DOH), specialty hospitals and PhilHealth; P332.5 billion for the Department of the Interior and Local Government; (DILG) and P328.8 billion for national defense.
Transportation agencies are proposed to receive P302.2 billion, while agriculture-related agencies will get P261.7 billion. The Department of Social Welfare and Development (DSWD) is allocated P241.6 billion, while state universities and colleges and the Commission on Higher Education will receive P176.5 billion.
The judiciary is proposed to receive P86.3 billion.
Health, infrastructure spending rise
The consolidated health budget is projected at P1.06 trillion, lifting government health spending to 3.19 percent of GDP from 2.68 percent this year.
The higher allocation is intended to improve access to hospitals, medicines, health facilities, financial assistance and other essential services.
Infrastructure spending under the administration’s Build Better More program is proposed at P1.467 trillion, equivalent to 4.4 percent of GDP. This is P178 billion higher than the amount authorized under the 2026 General Appropriations Act.
The funding will support roads, bridges, railways, public transportation, water infrastructure and other projects designed to improve connectivity and economic activity.
Lower unprogrammed funds
The proposed budget also places greater emphasis on programmed spending, with Unprogrammed Appropriations (UA) set at P111.984 billion.
DBM said this is the lowest UA proposed at the NEP level since 2019 and represents just 1.6 percent of the Total Expenditure Program (TEP)—the lowest UA-to-TEP ratio since 1991.
The proposed UA is largely intended to restore the fund balance remitted by the Philippine Deposit Insurance Corp. in 2024 and provide funding cover for foreign-assisted projects, subject to conditions under existing law.
DBM said the relatively low level of unprogrammed funds is meant to strengthen fiscal discipline, transparency and predictability by placing more spending directly under appropriations subject to regular budget scrutiny.
“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.
Congress to scrutinize proposal
House Speaker Faustino “Bojie” Dy said lawmakers would examine the proposed budget closely to ensure that its people-centered objectives are preserved through the congressional budget process.
“Ngayong nasa Kongreso na ang panukalang budget, tungkulin nating tiyakin na ang layuning ito ay mananatili hanggang sa huling bersyon ng General Appropriations Bill,” Dy said during the turnover ceremony.
The submission of the NEP formally begins congressional deliberations on the proposed 2027 spending program. Lawmakers will review, amend and ultimately approve the budget before it is submitted for presidential action.
The administration has framed the P7.2-trillion proposal as an effort to balance higher investments in social and economic services with tighter control over discretionary and standby funding—while directing public resources toward areas expected to have a lasting impact on households and economic growth.