President Ferdinand Marcos Jr. officially signed the ₱6.793-trillion national budget for 2026 into law on Monday, January 5, signaling a record-high spending plan aimed at human capital development and infrastructure.
The 2026 General Appropriations Act (GAA) is 7.4% higher than the previous year’s ₱6.326-trillion budget and represents approximately 22% of the country’s gross domestic product (GDP).
The President signed the measure at Malacañang Palace following a week-long review of its provisions.
Sectoral Allocations
The education sector received the largest share of the budget, with a ₱1.345-trillion allocation intended to meet UNESCO benchmarks.
According to the Department of Budget and Management (DBM), this funding will support the creation of over 65,000 teaching and non-teaching positions and the construction of nearly 25,000 classrooms.
Other major allocations include:
• Health: ₱448.1 billion, the sector’s highest budget level to date, focused on universal health care and disease surveillance.
• Agriculture: ₱297.1 billion, aimed at modernizing farming and fishing systems to ensure food security.
• Infrastructure: Approximately ₱1.296 trillion earmarked for capital outlays and priority projects.
Direct Vetoes and Transparency
During the signing, the President exercised his veto power to remove specific items within the “Unprogrammed Appropriations” (UA) to ensure fiscal responsibility.
This follows calls from budget watchdogs, such as Social Watch Philippines, which had urged the executive to scrutinize “questionable” last-minute adjustments made during the bicameral conference.
Acting Budget Secretary Rolando U. Toledo noted that the 2026 budgeting process featured increased transparency, including the first-ever livestreaming of Bicameral Conference Committee proceedings.
MUP Pay Hike
The 2026 budget also implements provisions of Executive Order No. 107, which mandates an increase in the base pay and subsistence allowance for Military and Uniformed Personnel (MUP) starting this fiscal year.
The Executive branch received the enrolled bill on December 29, 2025.
While the signing occurred a few days into the new year, the administration avoided a reenacted budget by completing the review before the first full working week of 2026.