Speech by President Ferdinand R. Marcos Jr. at the Signing of the General Appropriations Act (GAA) For the Fiscal Year 2026

Thank you very much to our Executive Secretary, Secretary Ralph Recto, for your kind introduction.

And may I add for all the work – [please be seated] for all the work that you amongst of course others have put into finding a middle course between all the different forces that were impinging upon the budget.

So, that we must recognize also Senate President Tito Sotto, the honorable members of the Senate who also put in many, many long hours and late nights. I was with you all the way by the way because although I wasn’t there, I was harassing everybody on the telephone, “Mika, what’s happening?” “Sandro, what’s happening?” “Tito Sen, what’s happening?” “[unclear], what’s happening?”

So, that’s much appreciated. Of course, the House Speaker Bojie Dy; the honorable members of the House of Representatives; Budget and Management Acting Secretary Rolando Toledo; the members of the Cabinet who although attempted to have a Christmas and New Year’s holiday were all on tenterhooks to see what the budget would actually come out as. That is how important the work that you have just done is. My fellow workers in government; distinguished guests; ladies and gentlemen.

Good morning.

The year 2025 tested our nation on many fronts. We experienced climate-related disruptions, earthquakes, economic uncertainty, and the exposure of widespread corruption within our system.

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 the trust in us, to strengthen accountability, deliver an honest and effective government to the Filipinos.

We are at a critical juncture in the implementation of this administration’s medium-term development plan and on the cusp of sweeping reforms in politics and in governance. The 2026 General Appropriations Act is a vital component in all of these.

With the signing of Republic Act No. 12314 or the General Appropriations Act for Fiscal Year 2026, we are committing to implement a budget that serves the people.

Totaling PhP6.793 trillion, the National Budget is aligned with our medium- and long-term development plans and vision, reflecting our investment in the Filipino.

We thank all members of Congress for the principled exercise of its power of the purse and for the meaningful reforms undertaken to widen participation to strengthen accountability throughout the budget authorization process.

And yet, the passage of the National Budget is only the beginning. Because today, we commence with the most difficult tasks – to ensure the proper execution and instituting true accountability.

The 2026 National Budget shall sustain our momentum in education reform, in health protection, in food security, in social security, and in job creation.

Education receives the highest allocation—amounting to over PhP1.34 trillion. This shall support the creation of teaching and non-teaching plantilla positions in public schools and the promotion or reclassification of our teachers to ensure quality teaching and learning. This shall also fund the construction of classrooms nationwide.

The 2026 GAA also has the largest health sector budget ever in the history of our country— PhP448.125 billion, supporting our goal of promoting access to Universal Health Care.

This will ensure that quality and affordable healthcare is available to every Filipino.

One billion pesos has also been allocated to the Department of Health’s Universal Health Care Fund for the Zero Balance Billing Program in local government hospitals as well, covering in-patient services in basic accommodation. The budget also allocates resources for disease surveillance, rapid response mechanisms, and sustainable health financing.

This budget further strengthens the PhilHealth with nearly PhP129.8 billion, including the PhP60 billion directed to be restored, aligned with the decision of the Supreme Court.

These funds shall support preventive healthcare and the improvement of PhilHealth benefit packages, lowering the out-of-pocket expenses of Filipino families.

On the other hand, the agricultural sector receives over PhP297 billion, solidifying our commitment to modernizing supply systems, and supporting farmers and fisherfolk.

Crucial investments in farm-to-market roads will connect farming communities to economic hubs, reduce transportation costs, and minimize post-harvest losses.

We will also transform our social protection system, moving beyond short-term relief to address systemic vulnerabilities and to promote sustained, inclusive growth.

Supporting this, the social services sector is provided with more than PhP270 billion.

We will prioritize social services that enhance the quality of life of every Filipino, safeguard the welfare of all sectors, and foster human capital development.

Through our responsive and rationalized flagship programs, this budget aims to steer us towards achieving a single digit poverty rate by 2028.

The 2026 National Budget also supports the implementation of the updated base pay schedule and increased subsistence allowance of military and uniformed personnel. This underscores our commitment to uphold the welfare of the men and women who safeguard our nation.

As our uniformed personnel protect our territory, so we shall also serve as vanguards of public funds, ensuring the prudent use of every peso.

We will strictly implement the provision on the “Prohibition on Political Involvement in the Distribution of Cash and Other Forms of Financial Assistance.”

Politicians shall be barred from the distribution of any financial aid and we shall ensure that the support reaches the intended beneficiaries without patronage.

Walang bawas, walang kulang.

We will also strengthen the role of Local Government Units through the increased allocations under the Local Government Support Fund, enabling them to address local development needs, support livelihoods, and create safe and resilient communities.

I stand firm in my constitutional duty to ensure the faithful execution of laws. Therefore, I hereby condition the implementation of certain provisions in this Act to conform to existing laws, policies, rules, and regulations. These include the Quick Response Fund (QRF), Engineering and Administrative Overhead Expenses, Payment of Retirement Benefits and Pensions, Capacity Development Programs, and Foreign Service Posts.

Moreover, keeping in mind our pursuit of economic recovery and sustainable growth, we shall implement programs and projects in accordance with laws, rules, and regulations.

These are the School-Based Feeding Program, Medical Scholarship and Return Service Program, PAMANA Program, Residential Care Services to Vulnerable Groups by Accredited Social Welfare and Development Agencies, Implementation of Infrastructure Projects of GOCCs, and Programs and Projects Related to Senior Citizens and Persons with Disability.

This shall ensure that these programs promote our long-term development goals.

With the approval of the 2026 GAA, I acknowledge that the 2025 GAA was deemed re-enacted and remained in force and effect until January 4, 2026.

In this regard, the DBM shall consider the expenditures lawfully incurred under the re-enacted budget in formulating its fund release for the guidelines of FY 2026.

We acknowledge the support of Congress in limiting the Unprogrammed Appropriations to essential needs.

However, I push further and reduce it to the absolute bare minimum. This shall be at a level lowest since 2019.

Let me be clear: the Unprogrammed Appropriations are not blank checks.

We will not allow the Unprogrammed Appropriations to be misused or treated as a backdoor for discretionary spending.

Its utilization is provided with safeguards and is only available when clearly defined triggers and tests are met and will be released only after careful validation.

My administration will enforce these safeguards without exception to serve the public interest and to advance our national development goals.

We will make releases charged from the UA transparent, providing the necessary details on the funding source and the corresponding purpose.

Lastly, to ensure that public funds are expended in clear service of national interests, I vetoed several items of appropriations with their purposes and corresponding Special Provisions under the UA, totaling almost PhP92.5 billion.

So, I direct now all concerned departments and agencies of the national government to exercise prudent fiscal management to ensure uninterrupted quality public service.

Sa ating mga kababayan, dama po namin ang inyong agam-agam at pangamba sa nakaraang budget.

Kaisa ninyo ako sa pagnanais na masigurong ang bawat pisong buwis ay mapupunta sa tamang proyekto at sa tunay na pangangailangan ng ating taumbayan.

Naririnig namin po kayo.

Sa National Budget ng 2026, malinaw ang direksyon ng inyong pamahalaan: magiging mas masinop, mas maingat, mas responsable kami sa paggastos ng pondo ng bayan.

Ang bawat programa at proyekto ay dadaan sa masusing pagsusuri upang masiguro na ito ay may malinaw na benepisyo sa mamamayan—lalo na sa sektor na higit na nangangailangan.

Magtatrabaho ang administrasyong ito upang mapabuti ang sistema, mapalakas ang pananagutan, at matuldukan ang katiwalian.

Sa lahat ng adhikaing ito, dalangin ko na maging katuwang namin ang bawat mamamayang Pilipino.

Ang pagbabantay, ang pagtatanong, ang pag-uulat, at ang pakikilahok [ay] mahalagang bahagi ng isang gumaganang demokrasya.

Kasama ninyo kami sa layuning tiyakin na ang budget ng bayan ay para sa bayan.

Hindi tayo na papayag na mapunta sa kurakot ang salaping pinaghirapan ng bawat Pilipino.

Sa pagharap ngayon natin sa isang bagong taon, nawa ang apoy na nag-aalab sa ating mga puso ay magdulot ng tunay na pagbabago tungo sa isang maunlad na kinabukasan.

Mabuhay ang Bagong Pilipino!

Mabuhay ang Bagong Pilipinas!

Maraming salamat at magandang umaga po sa inyong lahat. [applause]

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