The Department of National Defense (DND) is seeking an additional P76.96 billion for the Armed Forces of the Philippines Modernization Program in 2027, saying the proposed P50-billion allocation falls far short of its requirements.

Under the 2027 National Expenditure Program, AFP modernization funding was set at P50 billion, down 44.4 percent from the P90 billion allocated under the 2026 General Appropriations Act.

Defense Secretary Gilberto Teodoro Jr. told the House Committee on Appropriations that the program requires P126.97 billion next year.

The requirement includes P69.77 billion for priority new acquisitions, P21.26 billion for existing multiyear contracts carried over from the 2026 budget and P17.28 billion for Horizon 2 and Horizon 3 projects with existing multiyear contracts.

Another P18.63 billion is needed for payments due in 2027 under contracts to be entered into this year.

Teodoro said modernization is increasingly critical as the AFP faces a “highly technical war” environment in which response times can be as short as three seconds.

He warned that the AFP’s modernization framework, built around 15-year horizons, risks falling behind rapidly advancing military technology.

Teodoro said the DND is prioritizing foundational information technology, cybersecurity and command-and-control systems rather than focusing solely on military hardware.

“Modernization is a question of really building core systems which we are prioritizing now are IT and cyber systems for command and control,” Teodoro said.

“These cost less but are more critical to us because as foundational systems any compromise in the early stage you cannot patch anymore,” he added.

The defense chief stressed that the modernization program’s ultimate goal should be strengthening the military’s capabilities.

The Marcos administration has proposed a P324.63-billion budget for the DND for 2027.