“The 2026 national budget has unique features compared to previous years”
What we know about the proposed 2026 Philippine national budget is limited pending its approval by the Chief Executive this month.
But we do know at this point is what is publicly known about it and how it is being received, including the major political context around transparency and corruption concerns.
The proposed national budget for fiscal year 2026 is ₱6.793 trillion.
This represents about 22 percent of GDP and is larger than the 2025 budget, reflecting inflation pressures, higher debt servicing costs, and political demands for increased local spending.
Education is reportedly the top allocation, with the largest funding share in Philippine history (over ₱1 trillion).
Defense, infrastructure, health, and other departments also receive significant increases.
After intense bicameral negotiations under high public scrutiny, the bicameral committee cleared the final budget for ratification on Dec. 28, 2025.
The plan is to transmit it to the President for signature in early January, meaning the government may start 2026 on a reenacted budget for about a week.
Independent analysts project the 2026 deficit may be slightly wider than government targets, and financing will rely on a combination of revenue and borrowing.
The 2026 budget conversations have been highly politicized, largely due to scandals tied to the 2025 budget and alleged infrastructure corruption.
This has shaped how stakeholders view the 2026 proposal.
Senate leaders and some lawmakers argue the budget contains structural improvements to reduce corruption risks.
For example, a long-standing corruption loophole in unprogrammed appropriations, historically used for lump-sum allocations that critics say facilitated ghost projects, has reportedly been removed.
Progressive groups and some legislators claim the budget still contains significant politically directed allocations, including presidential and congressional “pork” funds; expanded Local Government Support Fund and other lump-sum financial assistance funds viewed as opaque or susceptible to politicized spending; and nearly ₱12 billion in confidential and intelligence funds criticized for lacking transparency and accountability mechanisms.
Other critics contend that despite reform rhetoric, the deeper “pork system” persists, which they see as continuing the conditions that allow corruption.
But Executive officials maintain the budget process has been more transparent than past years, including livestreamed bicameral committee sessions to allow public observation.
Sen. Panfilo Lacson has urged continued public vigilance once the budget is implemented, emphasizing oversight as crucial to preventing misuse.
Some House leaders claim there were no insertions and the process was open, though opponents dispute this.
Is the 2026 budget likely acceptable given past corruption?
Those who say it could be more acceptable cite the removal of at least one major source of past abuse—unprogrammed funds—may reduce certain corruption risks.
Increased transparency during bicameral deliberations represents a procedural improvement compared to historical practice.
Some senators and lawmakers have publicly committed to oversight and accountability.
Others insist that significant discretionary funds still exist that could be diverted or abused due to weak controls.
Civil society groups describe the budget as perpetuating the same systemic issues that fueled past corruption scandals, especially those involving infrastructure project irregularities.
Without stronger auditing and enforcement mechanisms, “reform” may be superficial rather than structural.
The 2026 national budget has unique features compared to previous years, including a larger allocation framework, more public scrutiny during bicameral deliberations, and some modifications intended to reduce corruption risks.
However, significant skepticism remains among watchdogs, opposition lawmakers, and civil society organizations regarding whether the budget truly addresses the systemic issues that have marred prior budgets.
The ultimate acceptability will depend not only on the enacted law but on how effectively monitoring, implementation, and enforcement mechanisms are applied once the budget goes into effect.
(Email: ernhil@yahoo.com)
