A P6.793 trillion proposed budget for 2026 was approved President Ferdinand Marcos Jr. during a Cabinet meeting.

The 2026 budget will focus on social services and education.

Budget Secretary Amenah Pangandaman presented the national budget, which is about 22 percent of the country’s gross domestic product, and 7.4 percent higher than the P6.326-trillion budget this year.

“The President himself sat down with the different agencies to ensure that all our priorities are aligned towards our common goal of achieving our vision of a Bagong Pilipinas,” Pangandaman said.

DBM said the National Expenditure Program (NEP) for fiscal year 2026 is anchored on the Philippine Development Plan and its three pillars, such as developing and protecting capabilities of Filipinos in education, health, social protection, agriculture, and labor sector; transforming production centers to generate more quality jobs in agri-business, trade, tourism, science and innovation; and fostering an enabling environment for infrastructure development, ensuring peace, security, justice, good governance, climate action, and regional development.

Earlier, DBM said it had received budget proposals totaling P10.101 trillion but had to evaluate programs and projects due to a limited fiscal space and its goal of reducing the government’s deficit from 5.5 percent of GDP in 2025 to 4.3 by 2028.

It added that the government will continue to invest in the Build Better More Infrastructure Program, and in digital transformation.

The DBM also explained that the lion’s share of the budget will go to Maintenance and Other Operating Expenses (MOOE) at P2.639 trillion to fund the implementation of government programs and projects. Personal services expenditure will get P1.908 trillion, capital outlay with P1.296 trillion, and financial expenses with 950 billion.

The national government agencies will receive P4.305 trillion, or 63.4 percent of the proposed budget. The local government units meanwhile will get P.1350 trillion, excluding locally implemented projects funded through national agencies.

For government-owned or controlled corporations, P188.3 billion is allocated in the form of subsidy, equity, and lending support.

The agency said the submissions were considered based on many factors, including alignment with the PDP 2023-2028 prioritization of programs that will give highest value, implementation of sustainable practices that can meet the public’s present and future needs, and fiscal space.

Marcos Jr. will submit to Congress the NEP within 30 days after the opening of the regular session.