2026 National Budget: the challenges of governance and fiscal consolidation

PHILIPPINES - Report 23 Oct 2025 by Diwa Guinigundo

The Philippines' 2026 P6.8-trillion national budget reflects the government’s effort to sustain social spending but exposes persistent weaknesses in fiscal governance. Despite reallocations from flood control to education, health, and food security, unprogrammed appropriations worth P250 billion remain a major risk for misuse. Transparency issues persist in the opaque bicameral conference where last-minute changes escape scrutiny, while pork-style allocations under social and infrastructure programs continue to blur accountability.

Rising national debt, now around P17.5 trillion with P1 trillion in interest payments, underscores the urgency of fiscal consolidation. Without stronger oversight, transparent budget execution, and depoliticized spending, fiscal expansion may erode credibility and weaken the government’s capacity for inclusive, sustainable growth.

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