THE Department of Budget and Management (DBM) has notified government departments and agencies to start preparing their budget proposals for 2027.
Budget Secretary Rolando U. Toledo issued National Budget Memorandum No. 156, signaling the preparatory stage for drafting the National Expenditure Program (NEP) and outlining the priorities for next year.
“The FY 2027 budget aims to capitalize on the gains of the previous years while responding to the emerging challenges of the country,” he said.
The memorandum, dated Jan. 5, was issued on the same day President Ferdinand R. Marcos, Jr. signed the record P6.792-trillion national budget for 2026.
Mr. Toledo said the 2027 budget seeks to protect the public’s purchasing power amid lingering inflationary pressures, drive inclusive growth through infrastructure investment, and boost climate resilience.
The NEP, the document prepared by the executive branch that serves as the basis for budget legislation, also aims to improve public service quality, accessibility and transparency through sustained digitalization, he said.
He said the budget also hopes to promote balanced development by aligning local, regional and national programs. Other priorities include empowering local governments and staying adaptable to emerging domestic and foreign risks.
“As the country is nearing its final phase of the PDP implementation, the proposed FY 2027 budget will serve as a critical pipeline to implement its strategic objectives,” he said.
The PDP Midterm Update 2023-2028 serves as the medium-term blueprint for inclusive, sustainable growth, anchored on AmBisyon Natin 2040’s goal of a middle-class society with per-capita income tripling.
Mr. Toledo told agencies to align their budget proposals with the roadmap’s main goals such as aggregate fiscal discipline, allocative efficiency, and operational efficiency.
“Avoid proposing PAPs (Programs, Activities and Projects) that duplicate devolved functions/services, except where allowed by law or necessary to address significant capacity gaps or exigencies,” he said.
The DBM has come under fire for failing to flag duplicate infrastructure projects in the 2025 budget, described by a former Budget Secretary herself as the “most corrupt budget,” due to allocations for the Department of Public Works and Highways.
In addition, Mr. Toledo said prudent debt management and efficient resource allocation remain a “critical priority” of the administration’s budgeting strategy.
The Bureau of the Treasury reported outstanding debt of P17.562 trillion at the end of October, 1.2% above the P17.36-trillion projected debt level by the end of 2025.
The Department of Finance has said that debt is projected to rise to P20.5 trillion in 2027, P21.9 trillion in 2028 and P23.3 trillion in 2029.
“Given the limited available fiscal space, agency budget proposals will be carefully evaluated in terms of value for money, performance metrics and alignment with the government’s fiscal consolidation strategy,” he said. — Aubrey Rose A. Inosante