Ongoing spending capped at P3.864T in 2026

THE Department of Budget and Management (DBM) said it set a ceiling of P3.864 trillion for ongoing spending in 2026, as the deadline looms for agencies to prepare funding proposals for more discretionary items, which are subject to available fiscal space.

According to National Budget Memorandum No. 154 issued on Tuesday, the DBM said the deadline for filing proposals to fund items subject to available space, which it calls Tier-2 spending, is April 30.

The budget ceiling for ongoing spending, or Tier-1, was set at P3.760 trillion in 2027. The DBM’s forward estimate for departments’ and agencies’ Tier-1 spending is P3.646 trillion for 2028.

Budget Secretary Amenah F. Pangandaman said on March 13 that the DBM is finalizing the Tier-1 budget.

The Tier-1 submissions notify the DBM of agencies’ spending requirements in ongoing activities in the next three fiscal years.

In the memorandum, the DBM said Tier-2 spending approvals will conform to the priorities identified by the Philippine Development Report 2024.

“These include flagship infrastructure programs, human capital development initiatives, food and water security measures, and digitalization efforts, among others,” the DBM said. 

In 2026, the overall National Expenditure Program will hit a record P6.793 trillion, up 7.38% from the P6.326-trillion budget signed in 2025. — Aubrey Rose A. Inosante