MANILA, Philippines — The Department of Budget and Management (DBM) has reduced its original funding request for 2027 by P2.655 billion, bringing its proposed budget down to P3.125 billion as part of efforts to promote fiscal discipline and improve government spending efficiency.
During a Senate Committee on Finance hearing on Thursday, October 22, Budget Secretary Kim Robert De Leon said the department trimmed its initial P5.780-billion request after reviewing spending priorities and identifying expenditures that could be covered by existing resources.
The proposed P3.125-billion allocation under the 2027 National Expenditure Program is also P444.23 million, or 12.45 percent, lower than the department’s P3.57-billion budget for 2026.
“This is a classic example of DBM practicing what it preaches,” De Leon told senators.
Despite the reduction, the budget chief assured lawmakers that the department would maintain essential services and continue implementing priority reforms.
“One thing we can assure the Chamber is that no service will be adversely affected by a lower budget allocation. We’re just spending more efficiently, revisiting whether we really need these items,” he said.
Among the adjustments is the removal of capital outlay funding for 2027, along with reductions in Maintenance and Other Operating Expenses (MOOE), including certain information and communications technology requirements.
De Leon explained that the DBM could use available continuing appropriations from previous years to support eligible expenditures, subject to government budgeting and accounting regulations.
“Instead of asking for more, we intend to maximize on that and revisit the quality of spending,” he said.
The department also plans to pursue digital transformation initiatives without substantial additional government spending.
These include DBM COMPASS, or the Centralized Open Monitoring Platform for Appropriations and Spending Statistics, which aims to strengthen transparency in government spending.
Another initiative, DBM SUBMIT, is an internally developed online portal designed to allow government agencies to electronically submit supporting documents for budget release requests, reducing paperwork and manual processing.
De Leon said both projects demonstrate how existing government personnel and technological resources can be used to improve public services while controlling expenditures.
“This is how we intend to pursue our digital transformation, not really needing much additional spending on the part of government, but utilizing existing talents and resources that we have,” he said.
The department’s spending adjustments received favorable reactions from Senate leaders.
Senator JV Ejercito, who presided over the budget hearing, acknowledged the DBM’s understanding of the government’s limited fiscal resources.
“Kung meron mang nakakaintindi ng ating fiscal space, it’s DBM,” Ejercito said.
Senate President Sherwin Gatchalian also emphasized the importance of government institutions setting an example in responsible spending.
“Practice what we preach, pareho kay Secretary,” Gatchalian remarked.
The DBM maintained that its reduced budget proposal would allow the department to continue delivering its mandated services while pursuing transparency, digitalization, and more efficient management of public funds.
The proposed allocation remains subject to congressional deliberations and approval as part of the 2027 national budget.
Source: Department of Budget and Management
