Manila’s political corridors buzzed with anticipation on Monday as the House of Representatives formally launched deliberations on the proposed P6.793 trillion (approximately US$120 billion) national budget for 2026. This record-breaking financial plan, the largest in the nation’s history, comes under intense scrutiny amid growing public and legislative demands for transparency in how taxpayer money is allocated and spent.
A Push for Openness in Budget-Making
The House committee on appropriations, chaired by Nueva Ecija 1st District Representative Mikaela Suansing, convened to hear a comprehensive briefing from the Development Budget Coordination Committee (DBCC). The DBCC, a key inter-agency body, includes representatives from the Department of Budget and Management (DBM), the Department of Finance, the Department of Economy, Planning, and Development, and the Office of the President. Their role is to outline the National Expenditures Program (NEP) and provide clarity on the state of the country’s finances, including funding sources for the ambitious budget.
House Speaker Ferdinand Martin Romualdez, addressing the committee and DBCC members, emphasized a historic shift toward openness. “We ended the practice of the ‘small committee’. We welcomed civil society observers. Because the Filipino people deserve full transparency in how their hard-earned money is planned, allocated, and spent,” Romualdez declared on Monday. He further underscored the importance of trust, stating, “If we have a clear process, we also have clear trust from the people. And when the people show trust, the government will be stronger. Transparency is not an option — it is the cornerstone of democratic governance.” 
Romualdez also set the tone for rigorous oversight, assuring executive branch partners that the House would “scrutinize, question, and deliberate thoroughly” while maintaining a spirit of collaboration. “For at the end of the day, at the heart of our collaboration lies a common goal: to deliver a better, more dignified life for every Filipino family” he added.
Representative Suansing echoed this commitment, placing Filipinos at the core of the budgetary process. “Our commitment is firm: In this budget and in the years to come, we are bringing the Filipino people back in the center of the budget process where you rightfully belong” she said. She highlighted the significance of every peso, noting, “Every peso of this budget comes from the blood and sweat of Filipinos, that’s why your Congress will deliberate intently in the coming months to ensure that every peso will be allocated towards the betterment of the people.”
Breakdown of the 2026 Budget: Priorities and Allocations
The proposed budget, submitted by the DBM to the House on August 13, allocates significant resources to critical sectors, reflecting the government’s priorities for national development. Education tops the list with a proposed P928.5 billion (approximately US$16.5 billion), underscoring a focus on human capital development. Public works follow closely with P881.3 billion (approximately US$15.7 billion), likely aimed at infrastructure projects to spur economic growth. Health, a perennial concern amplified by recent global challenges, is allocated P320.5 billion (approximately US$5.7 billion).
Other major allocations include defense with P299.3 billion (approximately US$5.3 billion), interior and local government with P287.5 billion (approximately US$5.1 billion), agriculture with P239.2 billion (approximately US$4.3 billion), and social welfare with P277.0 billion (approximately US$4.9 billion). Transportation receives P198.6 billion (approximately US$3.5 billion), while the judiciary and labor and employment sectors are allocated P67.9 billion (approximately US$1.2 billion) and P55.2 billion (approximately US$980 million), respectively.
At a broader level, social services command the largest share of the budget at P2.314 trillion (approximately US$41.2 billion), followed by economic services at P1.868 trillion (approximately US$33.3 billion), general public services at P1.202 trillion (approximately US$21.4 billion), debt servicing at P978.7 billion (approximately US$17.4 billion), and defense at P430.9 billion (approximately US$7.7 billion). These figures paint a picture of a government balancing immediate social needs with long-term economic and security goals.
Transparency Reforms in Action
A notable feature of this year’s budget deliberations is the inclusion of civil society organizations as observers, a reform championed by both Romualdez and Suansing. Their presence during the briefing signals a departure from past practices where budget discussions were often conducted behind closed doors or within limited committees. This move aligns with broader calls for accountability in governance, particularly in how public funds are managed in a country where corruption scandals have historically eroded public trust.
The push for transparency is not merely symbolic. It responds to long-standing criticisms that budget processes in the Philippines have often lacked inclusivity, with allocations sometimes influenced by political patronage rather than public need. By opening the deliberations to external scrutiny, the House aims to rebuild confidence in the system, ensuring that the budget reflects the priorities of the Filipino people rather than narrow vested interests.
Challenges Ahead: Balancing Ambition with Accountability
While the proposed budget’s scale reflects ambitious plans for national development, it also raises questions about fiscal sustainability and implementation. The Philippines has grappled with a significant debt burden in recent years, exacerbated by borrowing to fund pandemic recovery efforts. The allocation of nearly P1 trillion for debt servicing in 2026 highlights the ongoing challenge of managing public finances without compromising growth or social programs.
Moreover, the effectiveness of budget allocations will depend on how well funds are executed at the ground level. Past budgets have faced criticism for delays in project implementation, bureaucratic inefficiencies, and allegations of fund misuse. The heavy investment in education and health, while commendable, must translate into tangible outcomes—better schools, improved healthcare access, and equitable opportunities for all Filipinos, especially in underserved regions.
The emphasis on infrastructure through public works spending also carries risks and rewards. Well-executed projects could stimulate economic activity, create jobs, and improve connectivity across the archipelago. However, without stringent oversight, such large-scale investments risk becoming mired in cost overruns or corruption, issues that have plagued similar initiatives in the past.
Regional Context: Comparing Budgetary Priorities
In a broader Southeast Asian context, the Philippines’ 2026 budget mirrors trends across the region where governments are increasing public spending to address post-pandemic recovery and long-term development goals. Neighboring countries like Indonesia and Vietnam have similarly prioritized education, health, and infrastructure in their national budgets, recognizing these as pillars of sustainable growth. However, the Philippines’ significant allocation for debt servicing—higher in relative terms than some regional peers—underscores unique fiscal pressures that Manila must navigate.
Indonesia, for instance, has focused heavily on infrastructure under President Joko Widodo’s administration, with projects like the new capital city Nusantara absorbing substantial funds. Vietnam, under the leadership of the Communist Party, has balanced social welfare with industrial growth, channeling resources into export-driven sectors. The Philippines’ approach, with its strong emphasis on social services, suggests a policy direction aimed at addressing inequality—a persistent challenge in a country where economic gains have often been unevenly distributed.
Public Expectations and Political Stakes
As deliberations unfold over the coming months, the budget process will serve as a litmus test for the government’s commitment to reform. Public expectations are high, particularly among civil society groups now privy to the discussions. Filipinos, who contribute to the national coffers through taxes and labor, will be watching closely to see if promises of transparency and accountability materialize into concrete policy outcomes.
For lawmakers, the stakes are equally significant. The budget is not just a financial document but a political statement of priorities. How funds are allocated—whether to education over defense, or social welfare over debt repayment—will shape public perception of the administration and the House’s effectiveness. With national elections on the horizon in the coming years, decisions made during these deliberations could influence voter sentiment and political fortunes.
Looking Forward: A Budget for the People?
As the House of Representatives dives deeper into the P6.793 trillion budget, the central question remains: will this financial blueprint deliver on its promise of a better life for Filipinos? The commitment to transparency and inclusivity is a promising start, but translating rhetoric into results will require sustained effort, rigorous oversight, and genuine collaboration between branches of government.
For now, the presence of civil society observers and the public nature of these deliberations offer a glimmer of hope that the budget-making process can evolve into a truly democratic exercise. Whether this momentum carries through to implementation, and whether every peso indeed serves the Filipino people, are questions that will only be answered in the months and years ahead.
