MANILA, Aug 11 — Philippine President Ferdinand Marcos Jr. has asked Congress to approve a ₱7.2 trillion (RM483.84 billion) budget for 2027, six per cent higher than this year, as his government sought to regain momentum after a sharp economic slowdown and a corruption scandal that has slowed infrastructure spending.
The Philippine economy grew 2.3 per cent in the second quarter from a year earlier, its weakest pace since 2021, due to a slump in construction and softer domestic demand. That brought first-half growth to 2.6 per cent, below the 3.5 per cent to 4.5 per cent target for the year.
The Budget and Management Department (DBM) said that next year's proposed spending plan is equivalent to 21.7 per cent of gross domestic product (GDP).
Education will continue to receive the biggest share of the budget at ₱1.15 trillion (RM77.40 billion), though it is down 11.5 per cent from ₱1.3 trillion (RM87.49 billion) this year.
Healthcare will receive ₱353.8 billion (RM23.81 billion), 21 per cent lower than the ₱448.1 billion (RM30.16 billion) in the current budget, while funding for agriculture was set at ₱261.7 billion (RM17.61 billion), down 13 per cent from nearly ₱300 billion (RM20.21 billion) this year.
The Public Works and Highways Department, which has been at the centre of an infrastructure scandal, will receive ₱644 billion (RM43.34 billion), up 22 per cent from the ₱530 billion (RM35.63 billion) allocated for 2026. The agency's budget this year was cut by about 40 per cent from a proposed ₱881 billion (RM59.29 billion) amid allegations of irregularities in public works projects.
Defence spending is proposed to rise to ₱328.8 billion (RM22.11 billion) from ₱305.5 billion (RM20.56 billion) in the current budget, an increase of 7.6 per cent.
The DBM said that ₱316 billion (RM21.27 billion), or nearly four-fifths of the increase in next year's budget, would be used to cover mandatory obligations, like salary adjustments for military and uniformed personnel.
Speaking at a media conference, Budget Secretary Kim Robert De Leon said that Manila expects total disbursements of ₱6.9 trillion (RM463.68 billion) in 2027, against projected revenues of ₱5.2 trillion (RM349.44 billion), resulting in a fiscal deficit of ₱1.7 trillion (RM114.41 billion) to be financed through borrowing.
The government has set a GDP growth target of 5.0 per cent to 6.0 per cent for 2027 to 2030.
