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BUSINESS

Palace’s 64% budget cut won’t diminish operations

The budget cut for the OP is due to streamlining operations across the OP’s 49 delivery units and completing activities related to the Philippines’ hosting of the ASEAN Summit this year.

RA

Raffy Ayeng·6 September 2026, 10:42 pm·1 MIN READ

Palace’s 64% budget cut won’t diminish operations

EXECUTIVE Secretary Ralph Recto (third from left, front row), among other officials of the Office of the President, graced last week’s congressional hearing for their budget for next year. A significant budget cut was proposed by the OP; however, it will not diminish its service to Filipinos, according to Recto.

Photograph courtesy of OP

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  • The two-thirds cut in the Office of the President’s budget will not downgrade its work nor diminish its operations, Executive Secretary Ralph Recto said, following the House appropriations panel’s endorsement of the OP’s P10.15-billion budget request for 2027.

    The amount is 64 percent lower than the current year’s P28-billion budget of the OP, Recto stressed.

    “It is equivalent to one-seventh of one percent of the proposed P7.2-trillion national budget,” he pointed out.

    Recto said the budget is enough to oversee government operations, from responding to emergencies, delivering public services, monitoring economic plans, and protecting the national interests.

    “We are asking for less while remaining fully prepared to do more,” Recto told members of the House during a budget hearing last week.

    The budget cut for the OP is due to streamlining operations across the OP’s 49 delivery units and completing activities related to the Philippines’ hosting of the ASEAN Summit this year.

    By expense class, Maintenance and Other Operating Expenses account for P7.46 billion, or 74 percent of the planned spending. Personnel Services is at P1.86 billion, or 18 percent of the total. Capital Outlay amounts to P839 million, representing an eight percent share.

    Recto said the funding will support Cabinet meetings, policy consultations, presidential engagements, and the daily operations of Malacañang as the nation’s principal center of executive decision-making and inter-agency coordination.

    More importantly, the budget will help deliver timely assistance to vulnerable sectors and enable the government “to mount a response to contingencies and challenges.”

    “Every day, the President’s schedule is full because the demands of governing do not pause. But activity alone is not our measure of performance,” Recto said.

    Recto assured that every policy, meeting, engagement, and official mission will produce a clear public dividend whether through jobs and investments, stronger national security, better public services, or greater opportunities for Filipinos.

    He likewise stressed that fiscal discipline and accountability remain at the core of the OP’s operations.

    He also assured lawmakers that the proposed budget was crafted strictly within the parameters and processes established by the Department of Budget and Management.

    • Ralph Recto
    • 2027 national budget
    • Office of the President budget

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