President Ferdinand Marcos Jr. urged Congress on Tuesday to approve a ₱7.2-trillion proposed national budget for 2027, a 6% increase from this year, as the government works to regain economic momentum following slower growth and reduced infrastructure activity.
The proposed spending plan would allocate ₱1.15 trillion to education, the largest share of the budget, although the amount is 11.5% lower than this year’s ₱1.3 trillion allocation. Healthcare would receive ₱353.8 billion, while agriculture would get ₱261.7 billion, both lower than their 2026 allocations.
The Department of Public Works and Highways is set to receive ₱644 billion, a 22% increase from ₱530 billion this year. The agency has been at the center of an infrastructure scandal, with its 2026 budget previously reduced by about 40% from an initial proposal of ₱881 billion amid allegations of irregularities in public works projects.
Defense spending would also increase to ₱328.8 billion, up from ₱305.5 billion, while ₱316 billion of the overall budget increase would cover mandatory obligations such as salary adjustments for military and uniformed personnel.
The government expects ₱6.9 trillion in total disbursements against ₱5.2 trillion in revenues, resulting in a projected ₱1.7-trillion fiscal deficit to be financed through borrowing. The proposed budget comes as the economy grew only 2.3% in the second quarter, its weakest pace since 2021, while the government targets 5% to 6% annual growth from 2027 to 2030.
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