Business groups on Tuesday welcomed the 2026 national budget for prioritizing education and agriculture, but warned that large discretionary funds could still be vulnerable to political patronage.
President Ferdinand Marcos Jr. signed the 2026 General Appropriations Act into law on Monday. The P6.79-trillion budget draws praise from a broad coalition for meeting international spending benchmarks while facing renewed calls for stricter safeguards.
The People’s Budget Coalition, which includes the Makati Business Club and the Catholic Bishops’ Conference of the Philippines, said the new budget shows marked improvements in transparency. Education funding reached 4.36 percent of gross domestic product, surpassing the 4 percent international benchmark, while the P214.39 billion allocated for agriculture marks the highest level in over 10 years.
The coalition noted that while fund utilization has historically been a bottleneck, improved management could resolve long-standing delays in service delivery. The group also highlighted the restoration of funding for PhilHealth and Project NOAH, advocating for these resources to be integrated into a master plan for climate-resilient infrastructure.
Despite these gains, the coalition warned that “constitutionally questionable” unprogrammed appropriations remain a risk. The group classified several social welfare and “ayuda” programs as “soft pork” that could be subject to discretionary use by politicians.
Philippine Chamber of Commerce and Industry president Ferdinand Ferrer said in a separate statement that the budget should drive inclusive growth and economic progress. He urged that implementation be carried out in close consultation with the private sector.
“It is not enough to know what projects are funded. The detailed cost of each project must be clear to ensure efficient use of taxpayers’ money,” Ferrer said.
Financial Executives Institute of the Philippines (FINEX) officials said government spending remains a strong tool to boost growth and protect jobs, but warned that governance quality will determine the real economic impact. The organization expressed concern about the scale of unprogrammed appropriations, noting they could weaken fiscal discipline if not subject to transparent conditions.
Marcos vetoed P92.5 billion in unprogrammed funds following an open letter from the coalition that flagged P633 billion in risky line items. The president assured the public that politicians would not interfere in the disbursement of aid and that remaining unprogrammed funds would only be released once specific validation triggers are met.
The coalition is now calling for an executive order to establish rules-based mechanisms for aid distribution. The group also urged the government to limit confidential funds to security tasks and provide full public access to the Philippine Government Electronic Procurement System dataset.
While lawmakers said safeguards against patronage are already embedded in the law, the coalition maintains these measures remain untested and that implementation will be the deciding factor in the budget’s success.
