BUDGET authorities rejected a large portion of agencies’ funding requests as given a more selective approach to the proposed P7.2-trillion national budget for 2027.
Acting Budget Secretary Kim Robert de Leon told a House committee on Monday that over P11 trillion in budget proposals had been submitted for possible inclusion in the 2027 National Expenditure Program (NEP).
“The NEP is not a compilation of everything government agencies ask for,” de Leon said.
“It is the result of choices and prioritization within the fiscal space available to [the] government. In simpler terms, the NEP is never a wish list. It is a prioritized spending plan.”
The proposed budget, which was formally transmitted to Congress last week, is equivalent to 21.7 percent of gross domestic product (GDP). It is P407 billion, or 6 percent, higher than the P6.793-trillion national budget for 2026.
De Leon emphasized that the increase did not mean that the government simply accommodated the spending requests of departments and agencies.
“Clearly, we could not accommodate every request,” he said.
“We, therefore, had to carefully and thoroughly deliberate on these proposals, looking at their alignment with the president’s priorities and the Philippine Development Plan, implementation readiness, absorptive capacity and past performance, project maturity, expected outcomes and overall value to the Filipino people,” he added.
The Marcos administration is seeking to accelerate spending and infrastructure implementation with growth still being constrained by the fallout from last year’s flood control project scandal.
The economy grew by a lower-than-expected 2.3 percent in the second quarter, well below the government’s 2026 target range of 3.5 to 4.5 percent. The goal for 2027 to 2030 is 5.0-6.0 percent.
The emphasis on implementation capacity comes as the government has acknowledged that slow execution of infrastructure projects contributed to weaker economic activity.
The proposed 2027 budget allocates P1.16 trillion for capital outlays, an increase of P140.8 billion or 13.8 percent from the 2026 level.
De Leon said this would “allow the government to invest in infrastructure, equipment, facilities and other assets with long-term economic and social value.”
He assured that infrastructure projects included in the 2027 NEP had already undergone scrutiny for completeness of documentary requirements.
“This means that the agencies responsible, not only DPWH (Department of Public Works and Highways), but all the other agencies with infrastructure projects, can actually undertake early procurement,” de Leon said.
“[T]his is one thing (late procurement) that actually contributed to the delayed implementation of the infrastructure [agenda] this year ... that’s why we saw the effects of economic growth for the last two quarters,” he added.
The government is proposing to spend P1.467 trillion for infrastructure in 2027, equivalent to 4.4 percent of GDP.
The allocation covers projects not only under the DPWH but also transportation, agriculture, education, defense, digital infrastructure, health and other projects under other departments.
The DPWH, which was at the center of last year’s massive corruption scandal, has been allocated P643.95 billion under the proposed 2027 budget.
