President Ferdinand Marcos Jr. on Monday signed into law the P6.79-trillion national budget for 2026, while vetoing nearly P92.5 billion worth of projects under the unprogrammed appropriations (UA) of the spending measure.
Unprogrammed appropriations refer to standby items that can only be implemented if government revenues exceed targets or when additional grants and foreign funding are secured. However, such items have drawn criticism from lawmakers and watchdogs, who have flagged them as a form of discretionary spending susceptible to misuse.
While the President did not specify which UA items were removed or retained, several legislators had earlier raised concerns over the sharp increase in unprogrammed funds, which reportedly exceeded P200 billion prior to the signing of the General Appropriations Act (GAA).
In his remarks following the signing, Marcos emphasized that unprogrammed appropriations “are not blank checks,” assuring the public that strict safeguards govern their release and that funds will only be made available once clearly defined conditions are met.
“My administration will enforce these safeguards without exception to serve the public interest and advance our national development goals,” he said.
Key allocations
The Department of Budget and Management (DBM) described the 2026 budget as a shift toward a people-centered development agenda, with a strong focus on human capital and future generations. Education again received the largest share of the budget.
The education sector was allocated P1.345 trillion, equivalent to 4.36 percent of gross domestic product. According to the DBM, the funding will support the creation of 32,916 teaching and 32,268 non-teaching positions in public schools, as well as the construction of 24,964 classrooms nationwide.
The health sector secured its highest allocation to date at P448.125 billion, earmarked for the Universal Health Care Fund, including Zero Balance Billing, disease prevention and surveillance programs, sustainable health financing, and the hiring of additional doctors and nurses.
Agriculture was allotted P297.102 billion as the administration continues to pursue food security through the modernization of farming and fisheries, along with improvements in supply chains.
Social services received P270.18 billion, while P15.33 billion was set aside for the Disaster Rehabilitation and Reconstruction Assistance Program. The DBM said allocations for local government units were increased to address development challenges at the community level, though no specific amount was disclosed.
The Office of the President received the final enrolled bill on December 29, 2025, just two days before the 2025 national budget expired, following extended deliberations at the Bicameral Conference Committee.
DBM Secretary Rolando Toledo said the Executive conducted a careful review of the proposed budget to ensure alignment with the administration’s priorities and to consider recommendations from various stakeholders.
The enactment of the 2026 GAA comes amid continued public scrutiny over billions of pesos lost to alleged substandard or nonexistent flood control projects, as well as concerns over the pace of investigations into what has been described as one of the country’s biggest corruption scandals.
Call for prudence
In his Palace speech, Marcos directed all government agencies to exercise fiscal discipline and ensure uninterrupted delivery of quality public services.
“Magtratrabaho ang administrasyong ito upang mapabuti ang sistema, mapalakas ang pananagutan, at matuldukan ang katiwalian,” he said.
He also called on the public to remain vigilant, stressing that oversight, inquiry, reporting, and participation are essential pillars of a functioning democracy.
