Marcos signs 2026 national budget

After a week of scrutinizing all its allocations and provisions, President Ferdinand ''Bongbong'' Marcos Jr. on Monday signed into law the proposed national budget for fiscal year 2026. 

The signing of the P6.793-trillion budget for this year was held at the Ceremonial Hall of Malacañang Palace, which was attended by key government officials, senators and congressmen.  

“With the signing of Republic Act No. 12314 or the General Appropriations Act (GAA) for fiscal year 2026, we are committing to implement a budget that serves the people. Totaling P6.793 trillion, the national budget is aligned with our medium- and long-term development plans and vision, reflecting our investment in the Filipino,” Marcos said. 

“The passage of the national budget is only the beginning. Because today, we commence with the most difficult tasks—to ensure the proper execution and instituting true accountability,” he added.

According to the President, the 2026 budget shall sustain momentum in education reform, health protection, food security, social security, and job creation.

As mandated by the Constitution, education received the highest allocation, amounting to over P1.34 trillion. This will fund the creation of teaching and non-teaching plantilla positions in public schools, the promotion or reclassification of our teachers, and the construction of classrooms nationwide.

Marcos also noted that the 2026 GAA allocated the largest health sector budget ever in the history of our country, amounting to P448.125 billion.

This included a P1 billion budget for the zero balance billing program in local government hospitals, covering in-patient services in basic accommodation. The budget also provides funding for disease surveillance, rapid response mechanisms, and sustainable health financing.

Meanwhile, the Philippine Health Insurance Corporation (PhilHealth) received nearly P130 billion, including the P60 billion ordered restored in accordance with the Supreme Court’s decision.

“These funds shall support preventive healthcare and the improvement of PhilHealth benefit packages, lowering the out-of-pocket expenses of Filipino families,” Marcos said. 

The agricultural sector, on the other hand, was allotted over P297 billion for the modernization of supply systems and support for farmers and fisherfolk, including the establishment of farm-to-market roads that will connect farming communities to economic hubs, lessen transportation costs, and minimize post-harvest losses.

The social services sector was also provided with more than P270 billion, which will be used to enhance the quality of life for Filipinos, safeguard the welfare of all sectors, and foster human capital development.

Through such flagship programs, the President said the budget aims to direct the country towards achieving a single-digit poverty rate by 2028.

The 2026 GAA will also support the implementation of the updated base pay schedule and increased subsistence allowance for military and uniformed personnel.

Executive Secretary Ralph Recto earlier said the Executive Branch would ensure that the 2026 General Appropriations Act will satisfy not only the legal and technical requirements but, more importantly, the needs of the Filipino people.

Veto

Meanwhile, Marcos said he vetoed nearly P92.5-billion worth of line items under the unprogrammed appropriations in the 2026 GAA. 

According to Marcos, the unprogrammed funds under the 2026 GAA were reduced to its “absolute bare minimum,” or at the level lowest since 2019, to ensure that public funds are expended in clear service of national interests.

“Let me be clear—the unprogrammed appropriations are not blank checks. We will not allow the unprogrammed appropriations to be misused or treated as a backdoor for discretionary spending,” the President said. 

“Its utilization is provided with safeguards and is only available when clearly defined triggers and tests are met and will be released only after careful validation,” he added. 

Unprogrammed appropriations are budget items that will only be funded if there is excess government revenue and other funding sources, such as loans or special laws.

But in an online interview, Deputy House Minority Leader Edgar Erice vowed to question the 2026 national budget before the Supreme Court over the matter involving unprogrammed funds.

"Pinag-aaralan pa lang namin pero just the same, ang aking position, all unprogrammed funds in any form are unconstitutional. So I will have to challenge it before the Supreme Court," Erice said.

(We are studying it further but just the same, my position [is that] all unprogrammed funds in any form are unconstitutional. So I will have to challenge it before the Supreme Court.)

Reenacted budget

Marcos acknowledged that with the signing of the 2026 GAA on Monday, the 2025 GAA was deemed reenacted and remained in force and effect until January 4, 2026.

“In this regard, the DBM (Department of Budget and Management) shall consider the expenditures lawfully incurred under the reenacted budget in formulating its fund release for the guidelines of fiscal year 2026,” the President said. 

For a brief period, the government operated under a reenacted budget as it was only on December 29, 2025 when the Executive Branch received the ratified national budget from Congress.

Some lawmakers had flagged the proposed trillion-peso budget as it was supposedly marred with “grilled pork” or discretionary funds in bits and pieces, with some saying that there was no substantial allocation for genuine agrarian reform or national industrialization.

Meanwhile, amid anomalies in flood control projects, the proposed P6.793-trillion national budget had allocated P2.49 billion for maintenance and other operating expenses (MOOE) of existing flood control and drainage systems, structures, and other related facilities.

The Department of Public Works and Highways maintained that its proposed budget contained no funding for new locally-funded flood control projects, which was in line with Marcos' directive to streamline the agency’s expenditures.

Marcos also committed that the government will be more responsible in utilizing public funds.

“Sa national budget ng 2026, malinaw ang direksyon ng inyong pamahalaan—magiging mas masinop, mas maingat, mas responsable kami sa paggastos ng pondo ng bayan,” he said. 

(In the 2026 national budget, the government's direction is clear—we will be more prudent, more careful, more responsible in spending public funds.) 

“Ang bawat programa at proyekto ay dadaan sa masusing pagsusuri upang masiguro na ito ay may malinaw na benepisyo sa mamamayan, lalo na sa sektor na higit na nangangailangan. Magtatrabaho ang administrasyong ito upang mapabuti ang sistema, mapalakas ang pananagutan, at matuldukan ang katiwalian,” he added. 

(Every program and project will go through a thorough review to ensure that it has a clear benefit to the people, especially to the sector that needs it the most. This administration will work to improve the system, strengthen accountability, and end corruption.)

Executive Secretary Ralph Recto, meanwhile, said the 2026 GAA was not merely signed by the President, but was studied carefully by him and his team without any rush. 

“The signing of this budget is only the beginning. Its true test is in its implementation. At dito na papasok ang Ehekutibo. Kaya ang pangako namin ay simple—sisiguraduhin naming totoong makikinabang ang taumbayan,” Recto said in a press conference after the ceremonial signing. 

(This is where the Executive comes in. So our promise is simple—we will make sure that the people really benefit from the budget.) 

“We built a budget that is clean, disciplined, and responsive and we will implement it with integrity, constant vigilance, and a sense of urgency. Hihigpitan natin ang pagpapatupad nito. We will make sure that what is written in law will be built on the ground—visible, trackable, and valuable to the people,” he added. 

Education budget

Meanwhile, Education Secretary Sonny Angara said the 2026 budget is the biggest DepEd has secured in recent years, covering classroom construction, school facilities, learner subsidies, textbooks, feeding programs, digital equipment, and the hiring and training of personnel.

One of the largest allocation is P85.3 billion to address the country’s estimated 165,000-classroom backlog. Of this, P65 billion will fund the construction of 24,964 new classrooms, while P7.7 billion is earmarked for the repair and rehabilitation of existing school buildings. Angara said DepEd would continue to pursue partnerships with local governments and the private sector through public-private partnerships to speed up implementation.

DepEd also received P19.5 billion for the production of textbooks and learning materials. The agency reported that it was able to procure 105 textbook titles in 2025—nearly tripling previous output.

To support digital learning, the Department secured P10.6 billion for the DepEd Computerization Program, aimed at expanding access to laptops, digital tools, and internet connectivity in public schools nationwide.

Teacher development and staffing were likewise funded under the 2026 budget. DepEd was allotted P4.6 billion for teacher training and P42.4 billion for the creation of new plantilla positions, including 32,916 teaching items, 6,000 Principal I posts, and 10,000 School Counselor Associate positions. Additional funding was also provided for more than 11,000 administrative officers and 5,000 project development officers to reduce teachers’ administrative workload.

Health and nutrition programs also received increased support, with P25.6 billion allocated for the Expanded School-Based Feeding Program, expected to benefit about 4.6 million learners. DepEd said the program will cover all Kindergarten and Grade 1 pupils, as well as severely wasted and wasted learners in Grades 2 to 6, for up to 200 feeding days.

Angara said the expanded funding would allow DepEd to accelerate reforms aimed at improving access, quality, and learner well-being across the public school system.

“We are looking at a very promising 2026 for the education sector,” he said, citing continued support from the administration for education reforms.

No cellphones for media 

Earlier in the day, Malacañang reportedly imposed a “no cellphone” policy on all guests, including reporters covering the signing of the 2026 national budget.

Palace Press Officer Usec. Claire Castro said the program went smoothly because of the policy. She also noted that there should be no issue when it comes to transparency in the signing, as the program was also livestreamed online. 

“Mas naging maayos ang nasabing programa dahil ang lahat ng naimbitahan ay focus sa isinagawang paglagda ng Pangulo,” she said in a statement.

(The program was more orderly because everyone invited was focused on the President’s signing [ceremony].) 

“Huwag natin kalimutan na ang nasabing event ay naka live stream at napanuod ng lahat ng sabay sabay kaya wala naman po magiging isyu tungkol sa transparency nito. Sumunod niyan ay nagkaroon naman ng press briefing at ang lahat ng katanungan ng media ay sinagot naman.” 

(Let us not forget that the event was live-streamed and watched by everyone simultaneously, so there shouldn't be any issue regarding its transparency. Following that, a press briefing was held and all of the media's questions were answered.) —with a report from Sherylin Untalan/Vince Angelo Ferreras/AOL/KG/RSJ, GMA Integrated News