Economic services sector gets ₱277-B boost in proposed 2027 budget

The economic services sector is set to receive an additional ₱277.32 billion under the proposed 2027 national budget, representing a 17.83% increase from its 2026 level, the Department of Budget and Management (DBM) said Tuesday.

Acting Budget Secretary Kim Robert de Leon said the increase comes as the government seeks to sustain economic activity while funding the administration’s priority programs.

“In terms of sectoral allocation of our total expenditure program, nananatili pa rin naman ang social sector bilang pinakamataas na sector na makatatanggap ng pinakamalaking bahagi ng ating budget for 2027,” De Leon said during the ceremonial turnover of the proposed 2027 National Expenditure Program (NEP) to the House of Representatives.

(In terms of the sectoral allocation of our total expenditure program, the social sector remains the sector that will receive the largest share of our budget for 2027.)

However, De Leon said the social sector’s proposed allocation is about 5% lower than its 2026 General Appropriations Act (GAA) level.

He explained that the decrease was partly due to the continued availability of funds appropriated under the 2026 budget.

“We want to make sure that the budget allocated in 2026, which they can still use through 2027, is fully utilized and translated into direct outputs for our fellow Filipinos,” he said in Filipino.

Meanwhile, the defense sector is set to receive a 6.76% increase under the proposed 2027 National Expenditure Program, while general public services will get a 6.52% increase, according to De Leon.

The proposed ₱7.2-trillion national budget is ₱407 billion, or 6%, higher than the 2026 budget.

De Leon said the increase is largely driven by mandatory obligations, with ₱316 billion, or nearly four-fifths of the increase, going toward requirements such as higher National Tax Allotment for local governments and salary adjustments for government personnel.

The proposed budget will now be scrutinized by Congress before the final spending plan for 2027 is approved. — RSJ, GMA News