President Ferdinand R. Marcos Jr. on Monday signed into law the PHP6.793-trillion national budget for 2026, vetoing PHP92.5 billion worth of items under the Unprogrammed Appropriations to tighten safeguards on public spending and reinforce fiscal discipline.

The signing of Republic Act 12314, or the General Appropriations Act (GAA) of 2026, was held at Malacañan Palace.

In his speech, Marcos said the challenges of 2025, including climate-related disruptions, economic uncertainty, and the exposure of corruption, made it clear that reforms could no longer be delayed.

“The year 2025 tested our nation on many fronts… These challenges are painful, but they also made one thing clear: real change could no longer wait,” the President said.

He emphasized that the 2026 budget represents a pivotal moment in implementing governance reforms and rebuilding public trust.

“As we enter this year, let us take this opportunity to start moving forward with difficult but needed reforms in governance, to rebuild our trust… and deliver an honest and effective government to the Filipinos,” he added.

Education received the highest allocation at PHP1.345 trillion.

Marcos said this will fund the creation of teaching and non-teaching plantilla positions, teacher promotion and reclassification, and classroom construction nationwide.

“The national budget shall sustain our momentum in education reform,” he said.

The health sector was allocated its largest budget in history, at PHP448.125 billion, to advance universal healthcare.

Marcos said the allocation includes funding for the Department of Health’s Universal Health Care Fund, Zero Balance Billing program, disease surveillance, rapid response mechanisms, and sustainable health financing.

“This will ensure that quality and affordable health care is available to every Filipino,” he said.

Nearly PHP129.8 billion was also allocated to strengthen the Philippine Health Insurance Corp. (PhilHealth), including PHP60 billion restored in line with a Supreme Court decision, to help lower out-of-pocket expenses of Filipino families.

The agriculture sector received PHP297.102 billion to modernize supply systems, support farmers and fisherfolk, and fund farm-to-market roads.

“Crucial investments in farm-to-market roads will connect farming communities to economic hubs, reduce transportation costs, and minimize post-harvest losses,” Marcos said.

Social services were allocated PHP270.189 billion to address systemic vulnerabilities and promote inclusive growth, with Marcos saying the budget aims to steer the country toward a single-digit poverty rate by 2028.

The 2026 GAA also provides increased allocations for local government units, strengthens the Local Government Support Fund, and includes PHP15.33 billion for disaster rehabilitation and reconstruction under the National Disaster Risk Reduction and Management Fund.

Funding for military and uniformed personnel was retained, including updated base pay and increased subsistence allowances.

Marcos underscored that unprogrammed appropriations “are not blank checks.”

“We will not allow the unprogrammed appropriations to be misused or treated as a back door for discretionary spending,” he said.

He said safeguards would be strictly enforced and releases made transparent, adding that he vetoed items under the Unprogrammed Appropriations totaling almost PHP92.5 billion.

The President vowed to stand firm in his constitutional duty to ensure the prudent use of public funds. (PNA)