KUALA LUMPUR - President Ferdinand R. Marcos Jr. signed the PHP6.793 trillion  (USD123.5 billion)  national budget for 2026, vetoing PHP92.5 billion in unprogrammed items to strengthen spending controls and promote fiscal discipline. 

Marcos said the challenges of 2025, including economic uncertainty, climate disruptions, and corruption issues, showed that reforms could no longer be delayed.

“The difficulties of last year taught us that real change cannot wait and this year’s budget is a key step in implementing governance reforms and restoring public trust,” Marcos said at the signing of Republic Act 12314, or the General Appropriations Act (GAA) of 2026, in Malacanan Palace last Monday.

Education received the largest allocation at PHP1.345 trillion to fund new teaching and non-teaching positions, teacher promotions, and classroom construction nationwide.

Health was allocated PHP448.125 billion, the largest in history for universal healthcare programs, disease surveillance, rapid response, and sustainable health financing. 

PhilHealth will also receive nearly PHP129.8 billion, including PHP60 billion restored in line with a Supreme Court decision, to reduce out-of-pocket costs for families.

The agriculture sector was given PHP297.102 billion to modernize supply systems, support farmers and fisherfolk, and fund farm to market roads, improving connectivity between rural communities and economic centers.

Social services received PHP270.189 billion to reduce poverty and promote inclusive growth, while local governments will get increased allocations, including PHP15.33 billion for disaster recovery. 

Military and uniformed personnel funding was maintained, with updated pay and allowances.

Marcos emphasized that unprogrammed funds are not blank checks and must be used responsibly.

Analysts say the 2026 budget could influence how people move within the country and abroad. 

Better education and healthcare may encourage people to stay in rural areas or move to cities for work, while farm-to-market roads improve access to jobs and markets. 

Strengthened education and health services also help prepare Filipino workers for overseas employment, boosting remittances that support the domestic economy.