DBM: State agencies start 2026 project submissions

MANILA, Philippines — New project proposals for 2026 are pouring in as the Marcos administration targets tangible outputs halfway through its term, with the budget department closely monitoring fiscal space.

Budget Secretary Amenah Pangandaman admitted that the DBM is having quite a hard time balancing all proposals from goverment agencies, amid the ongoing second tier of the budget process.

“There are lot of programs and projects that our Cabinet members want to pursue next year, plus there’s continuation of existing projects,” Pangandaman told reporters on the sidelines of the East Asia and the Pacific International Public Procurement Conference yesterday.

“We are in the second half of the administration, we want more output from the departments. There are so many proposals,” she said.

This developed after DBM asked state agencies to submit their proposals for new or expanded programs.

Under the government’s two-tier budget process, ongoing spending is considered in Tier 1 and proposals for new and expanded spending are evaluated in Tier 2.

After Tier 1 is completed, DBM would know what the ongoing spending requirements for existing activities and projects will be for the next three fiscal years.

These will be used to update the expenditure plan and fiscal strategy.

The government can then calculate the fiscal space that will be available to fund new projects or scale up existing activities in terms of scope, timing, number or type of beneficiaries, design and implementation method.

Last year, the DBM received some P9 trillion worth of projects but only P6.326 trillion was approved under the General Appropriations Act.

For 2025, the DBM has yet to finalize all proposals but Pangandaman said these would likely exceed last year’s P9 trillion level.

“We are looking for fiscal space. We have to go through the process and make sure documentations are complete and project proposals are shovel-ready so the money will not go to waste,” Pangandaman said.

She added that the DBM would soon release the first quarter budget utilization of departments and agencies to check those who are efficiently spending their resources.

Based on the government’s fiscal program, the 2026 national expenditure program is pegged at a record P6.793 trillion.

Next year’s planned budget is 7.3 percent higher than the 2025 appropriation of P6.326 trillion.

The 2026 budget aims to focus on key priorities that include managing the lingering effects of high food prices and safeguarding the purchasing power of Filipinos.

Next year’s spending plan would also continue to support infrastructure investments and sustain the government’s efforts to digitize public financial management to boost bureaucratic efficiency and drive transparent service delivery.