What the 2026 budget is telling us
The 2026 budget of P6.793 trillion was approved by the bicameral conference committee last week, dispelling fears that the country would have to do with a reenacted budget for next year.
The budget process for 2026 made history. Previous bicameral budget conferences were held behind closed doors, often leading to suspicions of anomalous insertions in the final budget draft. This time, the proceedings were livestreamed. Anyone who had the time and inclination could follow the discussions and ensure that no insertions and other secret maneuvers were made. The decision to livestream proceedings is partly in reaction to the flood control scandal and in keeping with the Marcos administration’s pledge of transparency.
To be sure, there were frequent suspensions and sidelined discussions during the deliberations. These raised concerns about the effectiveness of this transparency initiative. Still, this is an unequivocal move and a good first step toward open governance. The open process tempered any brazen moves to introduce provisions that run counter to the interests of the people.
Of course, there are no guarantees that the resulting law is free from any machinations; that will take time to figure out, at the implementation level.
The 2026 budget contains the following highlights: First, there was expanded funding for social safety nets and assistance programs, even as so-called unprogrammed appropriations have been controversial. Critics have argued that such appropriations could be misused. Thus, there is greater need for accountability mechanisms for these items.
Health insurance funding for Filipinos was restored, as the budget boosts the Philippine Health Insurance Corp.’s subsidy to about P129.76 billion. This addresses previous funding gaps and ensures broader access to health services.
The investment in education is historic; it comprises around 20 percent of the national budget, or 4.5 percent of the gross domestic product. It fosters inclusive opportunities by supporting basic education, classroom construction, feeding programs, and financial aid.
The increased support for local governments reflects a decentralized approach that enhances local service delivery, empowers communities, and encourages greater participation in governance.
During deliberations, Senate finance leaders stressed that the bicam budget contains safeguards to prevent repeat scandals (such as the flood control controversy), which helps rebuild public trust and accountability in government spending.
The Department of Public Works and Highways received a significantly reduced budget of P529.6 billion, 40 percent less than the P881 billion originally proposed. The DPWH is at the center of the controversy over flood control and other infrastructure projects.
Beyond the nominal amounts and the reconciliation of differing versions of the budget, this year’s bicam deliberations highlight several crucial issues.
First, there is a need to balance development needs with fiscal responsibility. The deliberations took place at a time where there is no clear resolution yet of the massive flood control scandal that has engulfed the nation. Yes, the country needs significant infrastructure to improve its citizens’ quality of life, attract investors, and advance the economy. But from what we have seen, there is also a need to keep a close watch on how public officials manage our money. They must nevermore be given the opportunity to devise schemes to divert these into their own pockets.
The reduction of the DPWH budget and the restoration of unprogrammed appropriations—even as the Strengthening Assistance for Government Infrastructure and Social Programs was removed for its association with flood control kickback schemes—reflect the challenges of balancing infrastructure development with limited fiscal space.
The government, then, should prioritize projects that promote inclusive growth, such as social programs and foreign-assisted infrastructure. It is equally important, however, that fiscal policies remain sustainable and equitable.
Finally, along with strengthening public governance and accountability is the urgency of institutionalizing environmental, social, and governance measures at the community level, particularly in land use planning, environmental management, and disaster resilience, taking into consideration the uneven capacity of local government units across the country. ESG would enhance local governance performance and ensure that national development priorities translate into tangible benefits for communities.
The 2026 budget may not be perfect, from the process to the outcome. Still, it signals a significant shift and an awareness of what truly matters to Filipinos at this crucial point of our history.
The budget is not only the business of lawmakers and economic managers. It is also the people’s. May we sustain our interest in and attention to how our taxes are being spent, to prevent a repeat of abuses that have marred our institutions, and eroded confidence in our systems.
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Dindo Manhit is the CEO and managing director of Stratbase Group.
