The Department of National Defense (DND) on Tuesday presented its proposed ₱295.18-billion budget for 2026 before the Senate Finance Subcommittee E, highlighting a strategic shift toward archipelagic defense, territorial protection, and maritime domain awareness.
Defense Secretary Gilberto Teodoro Jr. said the agency is refining the Armed Forces of the Philippines’ (AFP) modernization framework to prioritize essential capabilities under the Comprehensive Archipelagic Basing System.
He said the DND plans to repeal outdated provisions of the modernization program to allow more flexible financing and project management.
Some previously approved projects will no longer proceed because they have become obsolete or financially impractical. “A horizon with a fixed amount doesn’t make sense and doesn’t make good project management either. That is why we’re asking for the repeal on a project-by-project basis,” Teodoro said.
The defense chief noted that the current five-year timeline for implementing large defense acquisitions is inefficient, given the long lifespan of military assets. He proposed syndicated loan arrangements to spread amortization costs over two decades, aligning payments with asset longevity.
“Why should we pay everything in five years when the life of the asset will be about 20 or 25 years?” he said.
Teodoro said this approach would allow the Philippines to negotiate better terms with foreign suppliers and multilateral institutions, potentially lowering interest rates.
Senator Ronald dela Rosa, who presided over the hearing, cautioned that repealing the existing modernization law should not mean disregarding valuable lessons learned from its implementation.
“This law is a failure because of funding gaps. From a law with teeth, it becomes a waste. So when we repeal it, the law that will replace it should address the problem,” Dela Rosa said.
He emphasized that future legislation must ensure realistic financing mechanisms and adaptability to evolving defense needs.
The AFP Modernization Program spans three phases—Horizon 1 (2013–2018), Horizon 2 (2018–2023), and Horizon 3 (2023–2028)—recently extended to 2034 under “Re-Horizon 3,” with a focus on self-reliant defense and advanced air capabilities.
Teodoro described the existing 15-year modernization cycle as “too long and impractical,” urging reforms that allow faster adjustments to emerging threats. He said the Philippines must be ready to acquire new systems and infrastructure as security dynamics evolve, citing lessons from conflicts such as the war in Ukraine.
