THE Department of Budget and Management (DBM) said it will maintain public spending above 20% of gross domestic product (GDP) over the medium term, with the budget expected to approach or even breach P7 trillion by 2028.
Spending “will remain above 20% of GDP over the medium term to sustain funding support for priority sectors and consolidate gains from human capital development, poverty reduction, and economic programs,” Budget Secretary Amenah F. Pangandaman said in a national budget memorandum dated July 2.
Economic managers have proposed a P6.793-trillion national budget for 2026, up 7.4% from the actual P6.326-trillion budget in 2025. This is equivalent to 22% of GDP.
The proposed 2026 National Expenditure Program is targeted for submission to Congress by August.
The DBM said the budget ceiling is set at P7.232 trillion (21.6% of GDP) in 2027 and P7.702 trillion (21.2% of GDP) in 2028.
Based on the revised program approved by the Development Budget Coordination Committee (DBCC), expenditure for this year is pegged at P6.082 trillion, from P6.182 trillion previously.
The DBCC expects expenditure of about P6.630 trillion in 2026, against the previous target of P6.540 trillion.
The expenditure estimate for 2027 was lowered to P6.970 trillion and P7.466 trillion for 2028.
“This will also help maximize the economic multiplier effects of public infrastructure investments, which will be kept at between 5% and 6% of GDP,” it said.
In the first five months, spending rose 9.71% to P2.48 trillion. — Aubrey Rose A. Inosante