President Ferdinand Marcos Jr. has urged Congress to move quickly on the proposed 2026 national budget, calling it essential to sustaining the country’s recovery and pushing forward his long-term vision of a “Bagong Pilipinas” (New Philippines).

In his budget message on Wednesday, Marcos said the Philippines is on track to becoming a regional leader. But while the nation is emerging from the pandemic’s shadow, he admitted the rebuilding work is far from over.

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

He called on lawmakers to work with urgency and unity in approving the budget, which he described as the 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.

The Bagong Pilipinas program is the administration’s central governance brand, focusing on transformation, innovation and inclusive growth. The proposed budget reflects this vision, giving priority to education, infrastructure, digitalization and social services.

The Department of Budget and Management handed over the proposed National Expenditure Program for the coming year to the House of Representatives on Wednesday.

The lawmakers, who hold the “power of the purse” under the Constitution, will comb through the spending plan.

Marcos said the budget allocations aim to build a resilient, inclusive, and future-ready Philippines through massive investments in infrastructure, human capital, food security, and national security.

He reaffirmed his administration’s commitment to the Agenda for Prosperity, which he called the blueprint for the country’s economic transformation.

“We shall continue to pursue our Agenda for Prosperity — the blueprint we have been 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.

As the administration reached its midpoint, Marcos signaled a shift in focus — investing not just in physical infrastructure but in the Filipino people themselves.

“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,” he said. “By nurturing future-ready generations, we will be able to truly achieve the full potential of our nation.”

Economic outlook

Marcos said the economy has maintained solid growth this year and is on track to meet its revised yearend target. To keep the momentum going, he stressed the need to maintain price stability and improve productivity, especially in growth-driving sectors like services and labor.

Looking ahead, the government expects the economy to expand at a healthy pace over the next few years. The peso, meanwhile, is projected to remain stable within a manageable range against the US dollar.

Fiscal plan

Revenue collections are expected to grow significantly next year, driven by tax digitalization and new measures such as the value-added tax on non-resident digital service providers.

Marcos said “social and economic services will remain the biggest contributors to the improved spending of the government.” He reiterated the plan to gradually reduce the fiscal deficit in the coming years.

The proposed budget, he emphasized, is anchored on the Philippine Development Plan and revolves around three pillars: developing and protecting the capabilities of individuals and families; transforming production sectors to create more quality jobs and competitive products; and creating an enabling environment for sustainable growth.

“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,” Marcos said.