MANILA – The Department of Budget and Management (DBM) has issued a directive for all government departments, agencies, and offices to commence crafting their budget proposals for the year 2026. This announcement was made by Budget Secretary Amenah Pangandaman during the Kapihan sa Manila Bay event, emphasizing the need for timely preparation to ensure that government projects are ready for implementation.
Pangandaman highlighted the lengthy nature of the budget process, stating that it requires thorough review by DBM’s bureaus, directors, and officials. To facilitate this, the DBM plans to organize a budget forum at the Philippine International Convention Center in Pasay City, involving national government agencies (NGAs) and government-owned and/or -controlled corporations (GOCCs).
On December 27, 2024, Pangandaman released National Budget Memorandum 153, which outlines the national budget call for 2026. The memorandum stresses that the budget should align with the Philippine Development Plan (PDP) 2023-2028, supporting the 2030 Agenda for Sustainable Development and the AmBisyon Natin 2040 vision.
The budget proposal for 2026 is expected to address ongoing challenges such as inflation, support infrastructure development, enhance digitalization of public financial management, and foster a more inclusive development environment. Pangandaman noted the necessity to optimize budget allocations, considering the country’s debt and the diverse needs of government agencies.
The evaluation process will scrutinize how agencies have utilized their previous budgets and the progress of their programs and projects. Only proposals that are ready for implementation will be considered for inclusion in the 2026 budget. Agencies are required to submit detailed supporting documents, including program plans and designs that specify procurement and implementation milestones, project locations, and beneficiaries.
The 2026 budget should reflect the priorities and policy directions of the Marcos administration’s eight-point Socioeconomic Agenda, as integrated into the PDP 2023-2028. It should also support the updated targets of the 2022-2028 Medium-Term Fiscal Framework (MTFF), reinforcing the government’s commitment to sustainable growth, improved public welfare, and alignment with the national development vision.