President Ferdinand R. Marcos Jr. has officially enacted the country's spending plan for 2026, signing the PHP6.793-trillion national budget into law on Monday, January 5, 2026. The signing ceremony for Republic Act 12314, known as the General Appropriations Act (GAA) of 2026, took place at Malacañan Palace.
A Budget for Reform and Resilience
In his remarks, President Marcos framed the 2026 budget as a direct response to the trials of the previous year. He cited climate-related disruptions, economic uncertainty, and exposed corruption in 2025 as painful but clear catalysts for urgent action. "These challenges made one thing clear: real change could no longer wait," the President stated.
He emphasized that this budget marks a critical step in implementing governance reforms and restoring public confidence. "Let us take this opportunity to start moving forward with difficult but needed reforms in governance, to rebuild our trust... and deliver an honest and effective government to the Filipinos," Marcos added.
Sectoral Highlights and Record Allocations
The 2026 budget carves out historic investments in key social sectors, with education receiving the lion's share.
The education sector secured the highest allocation at PHP1.345 trillion. This funding is earmarked for creating new teaching and non-teaching positions, promoting and reclassifying teachers, and constructing classrooms across the nation. Marcos affirmed that "the national budget shall sustain our momentum in education reform."
Healthcare received a record-breaking PHP448.125 billion, the largest in the nation's history, to advance the Universal Healthcare Act. This allocation supports:
- The Department of Health's Universal Health Care Fund.
- The Zero Balance Billing program.
- Enhanced disease surveillance and rapid response systems.
- Mechanisms for sustainable health financing.
"This will ensure that quality and affordable health care is available to every Filipino," the President said. A significant PHP129.8 billion was also set aside to strengthen the Philippine Health Insurance Corp. (PhilHealth), including PHP60 billion restored following a Supreme Court ruling, aimed at reducing out-of-pocket expenses for families.
The agriculture sector was allotted PHP297.102 billion to modernize supply chains, support farmers and fisherfolk, and build crucial farm-to-market roads. Marcos highlighted that these roads will connect farming communities to economic hubs, cut transportation costs, and reduce post-harvest losses.
Safeguards and Vetoed Appropriations
A cornerstone of the President's message was a firm stance on fiscal responsibility. He explicitly vetoed PHP92.5 billion worth of items under the Unprogrammed Appropriations, stressing that such funds "are not blank checks."
"We will not allow the unprogrammed appropriations to be misused or treated as a back door for discretionary spending," Marcos declared. He vowed to enforce strict safeguards and ensure transparent releases, standing firm in his constitutional duty to guarantee the prudent use of public funds.
Other notable provisions in the 2026 GAA include:
- PHP270.189 billion for social services to address systemic vulnerabilities, with a goal to steer the country toward a single-digit poverty rate by 2028.
- Increased allocations for Local Government Units and a strengthened Local Government Support Fund.
- PHP15.33 billion for disaster rehabilitation and reconstruction under the National Disaster Risk Reduction and Management Fund.
- Retained funding for military and uniformed personnel, covering updated base pay and increased subsistence allowances.
The enactment of the 2026 national budget sets the financial course for the government's reform agenda, placing a premium on social investment while enforcing tighter fiscal discipline in public expenditure.
