PRESIDENT Ferdinand Marcos Jr. said the government is bracing for extended ‘geopolitical tensions and economic challenges’ in its proposed P7.2-trillion 2027 national budget to allow the country to sustain its economic growth next year by prioritizing ‘investments in the Filipino people.’
The chief executive made the commitment in his 51-page President’s Budget Message with the 2027 National Expenditure Program, which was submitted by the Department of Budget and Management (DBM) to the House of Representatives on Tuesday.
‘Amid continuing global uncertainties-including geopolitical tensions, persistent inflationary pressures, and volatile energy prices-we remain steadfast in pursuing growth that is both resilient and fiscally responsible,’ Marcos said.
He said the budget will allow the government to meet its Philippine Development Plan (PDP) 2023-2028 and its long-term vision under Ambisyon Natin 2040, while reducing unnecessary expenditures and maintain its Upper Middle Income Status (UMIC) as it is faced with economic headwinds in the coming months.
‘This budget strengthens our capacity to invest in strategic infrastructure, human capital, food and energy security, and social protection, while reinforcing transparency, accountability, and the efficient use of public resources,’ he said.
‘Economic growth is meaningful only when it creates jobs, reduces poverty, strengthens the middle class, empowers local communities, and ignites renewed hope that tomorrow will be better than today,’ he added.
The President directed all agencies to focus on measurable outcomes, align proposals to the development agenda, and eliminate unnecessary or inefficient expenditures.
The 2027 NEP, he said, will contain provisions of the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) initiative, which aims to provide support to sectors affected by the Middle East crisis including fuel and rice subsidies as well as cash aid.
‘More than a short-term intervention, UPLIFT is a comprehensive whole-of-government framework that equips the country to respond proactively to global disruptions while supporting households, businesses, and key productive sectors,’ Marcos said.
‘Together with our broader fiscal reforms, it reinforces our strategy of stimulating economic activity through carefully calibrated public spending without compromising long-term fiscal sustainability,’ he added.
The war in the Middle East broke out after the United States and Israel attacked Iran last February disrupting global supply chains and triggering pump prices.
As of press time, the US and Iran have yet to come out with a deal to end hostilities in the Middle East.
The economic impact of the regional conflict was made worse by the slowdown in government spending on infrastructure projects after it launched a crackdown on anomalous flood control projects last year.
The Bangko Sentral ng Pilipinas said the ongoing El Niño, which is expected to last until the first quarter of 2027, can also cause food supply pressures.
Gross domestic product from January to March slowed down to 2.8 percent from 5.4 percent year-on-year, according to the Philippine Statistics Authority (PSA). Economic growth further weakened in the second quarter of the year to 2.3 percent.
Marcos urged Congress to pass the 2027 national budget with provisions consistent with the ‘people-centric’ goals of his administration.
‘Let us rise above differences and work together to ensure that every appropriation serves its intended purpose and every peso delivers real and lasting value,’ he said.