President Ferdinand Romualdez Marcos Jr. has called on Congress to urgently pass the proposed national budget, emphasizing its critical role in sustaining the country’s recovery and driving the long-term vision of a “Bagong Pilipinas” (New Philippines). 

In his budget message on Wednesday, Marcos said the Philippines is now on track to become a regional leader, particularly in the Asia-Pacific. But he also acknowledged that despite emerging from the shadow of the pandemic, much remains to be rebuilt.

“Indeed, we are on track with our Agenda for Prosperity and poised to be a leader among nations, especially in the Asia Pacific region,” Marcos said. 

“However, while we have recovered from the pandemic, we recognize that there is still much to rebuild, and there is still much that can be achieved.”

Marcos urged lawmakers to act with urgency and unity in approving the budget, which he described as key to unlocking the country's full potential and securing a better future for generations to come.

“We must not lose sight of our collective responsibility to ensure a brighter future for our people, especially the next generations,” he said. 

“Let us work together to realize the full potential of our nation, nurture future-ready generations and fulfill our dream of a Bagong Pilipinas.”

The “Bagong Pilipinas” initiative is the administration’s central governance brand, emphasizing transformation, innovation, and inclusive development. The proposed budget aligns with this vision by prioritizing education, infrastructure, digitalization, and social services.

The Department of Budget and Management (DBM) has officially submitted the proposed P6.793-trillion National Expenditure Program (NEP) for Fiscal Year 2026 to the House of Representatives. 

As the legislative body holds the constitutional “power of the purse,” lawmakers are now set to begin scrutinizing the proposed allocations outlined by the executive branch.

Marcos emphasized the importance of swift budget passage to sustain the country’s development trajectory and support key sectors aligned with the administration’s “Bagong Pilipinas” vision.

According to the President, the top recipients of the proposed 2026 national budget include Education with P928.5 billion, Public Works and Highways with P881.3 billion, Health with P320.5 billion, National Defense with P299.3 billion, Interior and Local Government with P287.5 billion, Agriculture with P239.2 billion, Social Welfare and Development with P227.0 billion, Transportation with P197.3 billion, the Judiciary with P67.9 billion, and Labor and Employment with P55.2 billion.

These allocations reflect the government’s priorities of building a resilient, inclusive, and future-ready Philippines by investing heavily in infrastructure, human capital, food security, and national security.

Marcos reaffirmed his administration’s commitment to the Agenda for Prosperity, calling it the guiding framework for the country’s economic transformation since the start of his term.

“We shall continue to pursue our Agenda for Prosperity—the blueprint we havebeen following since the beginning of my term for the country’s economic transformation—with the overriding objective of fulfilling the needs and aspirations of the Filipino people,” he said. 

He noted that the strategy has proven effective, driving the Philippines’ recovery from the pandemic and positioning the country as one of the fastest-growing economies in the Asia-Pacific region.

As his administration reaches its midpoint, Marcos signaled a strategic shift, emphasizing a stronger focus on investing not only in infrastructure but in the Filipino people.

“As we reach the halfway point of this Administration, we shall shift the focus of our strategy to invest greatly not only in infrastructure but in our biggest treasure: our people, especially the next generations,” he said. “By nurturing future-ready generations, we will be able to truly achieve the full potential of our nation.”

Macroeconomics assumptions

Marcos reported that the Philippine economy grew by 5.4 percent in the first quarter of 2025 and is on track to meet the revised year-end growth target of 5.5 to 6.5 percent. 

To sustain this momentum amid global challenges, he emphasized the need to maintain price stability and boost productivity, particularly in key growth-driving sectors such as services and labor.

Looking ahead, Marcos said the government projects a GDP growth rate of 6.0 to 7.0 percent from 2026 to 2028.

“The Philippine Peso is also expected to remain stable in the medium term. From 2025 to 2028, the foreign exchange rate is projected to range from Php 56 to Php 58 per US dollar,” he added. 

Fiscal program 

The President said the revenue collections  are projected to reach P4.983 trillion in 2026, a 10.2 percent increase from the P4.520 trillion programmed amount in 2025. 

“This will be achieved through intensified digitalization initiatives in our tax collection system as well as recent tax reforms, particularly the value-added tax on non-resident digital service providers,” he added. 

He aso mentioned that “social and economic services will remain the biggest contributors to the improved spending of the government.”

“We will continue to adopt a fiscal consolidation strategy, with the fiscal deficit expected to hit 5.3 percent of GDP in 2026, down from 5.5 percent in 2025, and decreasing even further to 4.3 percent by 2028,” he added. 

Marcos emphasized that the proposed FY 2026 National Budget remains firmly aligned with the goals of the Philippine Development Plan (PDP) 2023–2028. The budget is anchored on three core pillars: (1) developing and protecting the capabilities of individuals and families; (2) transforming production sectors to generate more quality jobs and competitive products; and (3) creating an enabling environment for sustainable growth.

According to Marcos, the selection and approval of Programs, Activities, and Projects (PAPs) in the 2026 budget were guided by key criteria, including alignment with the PDP, shovel-readiness, absorptive capacity, and fiscal sustainability.

“In line with this pillar of the PDP, we seek to be able to deliver quality education to nurture future-ready generations, provide access to quality health care, food security, proper nutrition, and increase income-earning abilities,” he said.