DBM Urges Agencies to Prepare 2026 Budget Proposals

The Department of Budget and Management (DBM) has officially called on government agencies to begin preparing their budget proposals for Fiscal Year 2026, following the issuance of National Budget Memorandum No. 153 on December 27, 2024.

Early Start for Budget Planning

The memorandum marks the initial stage in drafting the 2026 National Expenditure Program (NEP). Budget Secretary Amenah Pangandaman emphasized the importance of the early issuance, stating that it allows agencies ample time to prepare detailed budget requests.

“It’s a long process. Agencies must ensure their proposed projects are implementable and aligned with the Philippine Development Plan (PDP) and the government’s eight-point socioeconomic agenda,” Pangandaman said during the Kapihan sa Manila Bay forum.

Key Budget Planning Dates

The DBM has scheduled two critical forums:

• January 27: Internal budget forum for DBM bureaus.
• January 28: Budget forum with national government agencies and government-owned and controlled corporations (GOCCs).

Projected Budget for 2026

Under the 2022-2028 Medium Term Fiscal Framework (MTFF), state expenditures for 2026 are projected at ₱6.793 trillion. However, Pangandaman noted that the entire MTFF will undergo a review in the first quarter of 2025, which could lead to adjustments.

“There will be changes to the numbers. The MTFF review is scheduled for 2025 as adopted by both houses,” she explained.

DBM Assistant Secretary Rolando Toledo added that the final budget level for 2026 will depend on this review.

Addressing Criticisms of the 2025 Budget

Responding to claims that the 2025 budget was designed as an “election budget,” Pangandaman refuted the allegations, stating:

“It is the budget of the people, crafted to support the government’s macroeconomic targets and priorities.”

President Ferdinand Marcos Jr. signed the ₱6.326 trillion 2025 General Appropriations Act (GAA) in December, vetoing over ₱194 billion in items inconsistent with his administration’s priorities, including some Department of Public Works and Highways (DPWH) programs.

Looking Ahead

The preparatory stage for the 2026 budget underscores the government’s commitment to ensuring fiscal responsibility and alignment with national development goals.