Executive Secretary Ralph Recto convened members of the Cabinet to discuss and ensure the strategic alignment of the national budget for fiscal year 2026, Malacañang said.
Recto said “budget execution” was discussed to ensure consistency with the administration’s priorities and development agenda. The meeting was held Monday, January 12, with no further details provided by the Office of the President.
Present were Agriculture Secretary Francisco Tiu Laurel Jr., Public Works and Highways Secretary Vince Dizon, Health Secretary Teodoro Herbosa, Social Welfare and Development Secretary Rex Gatchalian, Transportation Secretary Giovanni Lopez, Budget Secretary Rolando Toledo, Education Secretary Sonny Angara, Presidential Management Staff Secretary Elaine Masukat, and Finance Undersecretary Karlo Fermin Adriano.
Meanwhile, the Department of Budget and Management said Wednesday that proposed reforms to the military and uniformed personnel pension system remain under study, with no final decision yet on whether changes will be pursued during the current administration.
Acting Budget Secretary Rolando Toledo said pension reform continues to be reviewed under Executive Order 187, which mandates further study of retirement policies for uniformed services.
“The pension reform is still being studied,” Toledo said, adding that recommendations made in 2023, including those by former finance secretary Benjamin Diokno, must be reassessed based on recent developments.
Toledo said any reform would have major fiscal implications and is being evaluated by a technical working group under Executive Order 17.
Despite the pending review, Toledo said the proposed 2026 national budget ensures funding for salary increases, allowances, and pension obligations of military and uniformed personnel.
The budget allocates P21.7 billion for the first tranche of base pay increases in 2026 under Executive Order 107, with P15.4 billion for active personnel and P6.3 billion for pension obligations.
It also increases the subsistence allowance to P350 per day starting January 1, supported by P71.1 billion, and provides P4.06 billion to fund 10,077 new positions across uniformed services.
Toledo dismissed claims that salary increases or pensions would be delayed, saying funds were transferred to agency budgets to allow faster release of benefits.
“Salary increases for both civilian and uniformed personnel are already included in agency budget
