AMID THE INDIGNATION of people over the systemic corruption, budget insertions and ghost flood control projects now being investigated, the deliberations for the 2026 budget remains far from being transparent.

According to civil society organizations (CSO), Congress reneged on its promise to open the discussions and budget deliberations for public scrutiny.

With “limited access” imposed by Congress during discussions regarding the National Expenditure Program (NEP), CSOs have expressed pessimism on the possibility of the 20th Congress ratifying a better version of 2025 General Appropriations Act which legislators described as the “most corrupt” since 1986.

ECONOMIC SLUMP

IBON Foundation Executive Director Sonny Africa said the P6.79 trillion 2026 budget being deliberated on is not what the country needs “amid slowing growth, increasing poverty and worsening hunger. 

“It may sound large, but the 7.4 percent increase is actually lower than the 9.7 percent growth in 2025, far below the historical average of 10.6 percent in the last 40 years,” Africa averred.

“Economic growth is already slowing this year as it is, despite relatively high government spending. An even weaker fiscal stimulus next year will just make the economy drag even further,” he added.

EDUCATION & HEALTH

Despite the significant increase for education– so teachers would have higher pay as personnel services is assured of P704.6 billion, up 20 percent—still more spending for education is warranted as the budget for school buildings remains unchanged at P46.3 billion, which is not even three percent of total infrastructure program. 

This means that while teachers may enjoy higher pay, stagnant hiring and underfunded school facilities will continue to strain workloads and limit students’ learning environments.

The five percent increase in the Department of Health’s budget to P267.2 billion is “marginal” with the 40 percent cut in medical assistance for indigents (P24.2 billion casting doubts on the President’s SONA promise of free healthcare) and despite the anticipated reinstatement of PhilHealth subsidy (at P53.3 billion, this is only half of P100 billion in 2023). 

Africa argued that 43 percent is still out-of-pocket expenses. If the president’s much-applauded promise of free healthcare is complied with, the health budget must increase from 1.1% to 3% of gross domestic product (GDP) or around P720 billion in 2026. 

SPENDING IT RIGHT

This would go far in making healthcare universal, creating jobs, and boosting both short and long-term growth, especially if it is spent on building public hospitals and hiring doctors and health workers.

The budget for social welfare increased by just 4.2% to P295.8 billion, not enough to avert increasing social distress with 4Ps (doubled) to P113 billion, reverting to previous levels after the large cut in 2025 to accommodate discretionary ayuda programs in aid of electoral campaigns. The 4Ps was at P106.3B in 2024, so its restoration in 2026 is not exceptional.

Funding for the TUPAD program was cut significantly to P11 billion in 2026 from its peak of P29.6 billion in 2024 and so with social pensions for seniors reduced to P49 billion in 2026. Yet cash transfers, pensions, and unemployment support, alongside public investment in care services, could greatly support aggregate demand and substantially spur economic growth.

RCEF RAISED TO P30B

The Rice Competitiveness Enhancement Fund (RCEF) was increased to P30 billion in 2026 from P10 billion because of mounting public criticism. Despite the increase, the agriculture sector is still under prioritized with only 3.8% of the total budget. 

The increase to P256.5 billion in 2026 is just incremental and insufficient for extension, irrigation, public procurement, and rural infrastructure needed to raise productivity and rural incomes, make food cheaper, and reduce dependence on food imports.

The 2026 budget lacks meaningful fiscal support to build Filipino MSMEs and national champions as part of an industrialization package of subsidies, technology acquisition, and protection. 

The P16 billion for the trade and industry sector is not even ¼ of one percent of the national budget and an inconsequential 0.1% of GDP. The government must be more active in its domestic industrialization policy instead of relying on attracting low value-added foreign investments.

HIGH IMPACT SPENDING

The cut in the infrastructure budget to P1.56 trillion in 2026 from 2025’s P1.64 trillion “is a step in the right direction, it is too small to change the overly capital-intensive bias and pork barrel-heavy tendencies of government spending,” Africa said.

He called for bolder spending on people, which has larger, more widely spread and more durable multiplier impacts than spending on hard infrastructure projects, which are import-heavy and prone to leakages from overpricing and corruption. They also take longer to develop and their benefits are not immediately seen.

Social sector activities are more labor-intensive than capital-intensive infrastructure. Thus, the budgets for health workers, teachers, and social protection, will flow quickly to local economies. This is because the poor and middle class tend to spend more of their income compared to high income groups. Their multiplier impact becomes even wider if free from corruption and linked to domestic industry supply chains.