Marcos Signs P6.793 Trillion Budget for 2026

President Ferdinand Marcos Jr. signed the P6.793 trillion General Appropriations Act (GAA) for 2026 on Monday, January 5, following what has been described as the largest corruption scandal faced by his administration.

During the budget signing ceremony at Malacañan Palace, Marcos acknowledged the systemic corruption uncovered in government infrastructure projects, particularly within the Department of Public Works and Highways (DPWH).

“These challenges are painful but they also made one thing clear, real change could no longer wait. And so 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 in us, to strengthen accountability, [to] deliver an honest and effective government to the Filipinos,” Marcos said in his speech.

The President echoed earlier statements from Congress that education remains the top budget priority, with P1.34 trillion allocated to the sector. The health sector was allotted P448.125 billion, which Marcos said would support universal healthcare programs.

Under the 2026 GAA, PhilHealth received P129 billion, including the P60 billion in excess funds that the Supreme Court ordered the executive branch to return to the state insurer.

The approval of the 2026 budget comes after months of controversy surrounding the previous spending plan, which critics described as one of the most corruption ridden GAAs in the country’s history due to alleged pork barrel insertions and deep cuts to social welfare programs.

The controversy intensified following the exposure of a massive flood control kickback scheme at the DPWH, where billions of pesos are suspected to have been siphoned from public funds by lawmakers, government officials, and contractors.

The corruption scandal has weighed on the Philippine economy, with reports of a rapid decline in gross domestic product amid investor concerns.

In response, Congress implemented several transparency measures, including the first ever livestreaming of bicameral conference committee deliberations between the House of Representatives and the Senate. These discussions were delayed after lawmakers reached a deadlock over the DPWH budget.

Despite the added transparency, budget watchdog groups have continued to warn of alleged pork barrel provisions in the 2026 GAA, urging Marcos to veto controversial items that could be vulnerable to misuse.

The executive branch received the ratified budget only days before the end of 2025, forcing the government to operate under a reenacted budget for five days. The reenacted budget remained in effect until January 4.

Marcos acknowledged the situation and directed the Department of Budget and Management (DBM) to account for government expenditures incurred during the brief reenactment period.

Budget Secretary Rolando Toledo welcomed the signing of the budget, saying its approval would soon translate into concrete government programs.

“The Executive received the enrolled bill on December 29, 2025 and conducted a thorough and careful review of the proposed budget to ensure consistency with the administration's priorities and taking into consideration valuable recommendations from stakeholders,” Toledo said.