Bicameral panel finalizes 2026 Philippine budget

By Kenneth Christiane L. Basilio, reporter

Philippine lawmakers reconciled disagreeing provisions of the proposed P6.793-trillion national budget for 2026, concluding Congress’ review of a process marked by one of the most contentious debates in recent years amid a corruption scandal over flood-control projects. 

Senators and congressmen in the bicameral conference committee resolved differences after six days of debates, broadcast live for the first time, with disputes over funding for the Department of Public Works and Highways (DPWH) threatening to stall proceedings. 

“This budget will truly address the needs of our people, and above all, this budget is corruption-free,” Senator Sherwin T. Gatchalian, head of the Senate finance committee, told the joint panel. “Most importantly, this budget, I can say, will be the standard for transparency.” 

The vote marks the end of Congress’ review of the Executive’s budget, submitted in August and reshaped with reforms to restore public trust after a multibillion‑peso kickback scheme involving anomalous infrastructure deals. 

Final allocations for some line items were not immediately available, though Mr. Gatchalian said updates would be posted online for public scrutiny. 

The panel agreed to trim P20.7 billion from the DPWH budget, based on adjusted material costs, rather than the P45 billion originally sought by senators. 

“I’m confident to say that there are no overpriced materials in this budget,” he said. Disputes over DPWH funding had stalled talks earlier in the week, with congressmen warning that drastic cuts could hinder economic activity. 

Public Works Secretary Vivencio B. Dizon had urged lawmakers to restore cuts, warning that slower government spending could weigh on growth, which eased to 4% in the third quarter amid the corruption scandal. 

“As much as possible, we want to avoid the economic impact of unimplementable projects,” Nueva Ecija Rep. Mikaela Angela B. Suansing, who heads the House appropriations committee, told the same panel. “It may have a big effect on our economy.” 

“It will hit our infrastructure spending and that would have a detrimental effect on our growth,” she added. 

The bicameral panel kept the P255billion cut for flood control works, though Mr. Gatchalian said ongoing projects already have funding under previous budgets. 

Lawmakers increased the Education department’s budget by 9.9% to P961.3 billion, largely for school construction to support 34,000 new classrooms in 2026, and raised the school feeding program allocation to P25.6 billion to extend coverage from 120 to 180 days. 

The Agriculture department and its agencies got a 20.7% boost to P185.77 billion to fund farm-to-market roads, post-harvest facilities and other modernization initiatives. 

Funding for the Philippine Health Insurance Corp. (PhilHealth) rose 14.8% to P129.78 billion, partly sourced from DPWH savings. Two railway projects had lower allocations: the North-South Commuter Railway was cut to P28.8 billion from P57.6 billion, and the Metro Manila Subway Project to P20.4 billion from P39.2 billion, with some savings redirected to the LRT-1 Cavite extension and Metro Manila rail improvements. 

Military base construction got P2.38 billion in funding, while modernization programs retained P40 billion, with an additional P50 billion in unprogrammed appropriations for contingencies. 

Unprogrammed funds, intended for use if excess revenues or new collections arise, now total P243.4 billion, including increased incentives for vehicle manufacturing to P4.3 billion from P333 million. Mr. Gatchalian said these funds would not be used for flood control or unrelated projects. 

The budget will return to each chamber for separate ratification before being sent to Malacañang for review by President Ferdinand R. Marcos, Jr. 

“There is enough time… it’s doable,” Mr. Gatchalian said on Wednesday, though he cited the need for a quorum if lawmakers are on break. Technical teams are finalizing the document to ensure timely submission and presidential review, Ms. Suansing said