Palace: 2026 national budget review nears completion

The Marcos administration is in the final stages of reviewing the Congress-ratified P6.793-trillion 2026 national budget, set to be signed into law tomorrow. Due to the delay, the government will operate under a reenacted 2025 budget for nearly a week. Amid controversies over pork barrel items and flood control funding, watchdogs urge President Marcos to take action.

MANILA, Philippines — The Malacañang has stated that the review of the P6.793-trillion 2026 national budget, ratified by Congress on December 29, 2025, is in its final stages. It is expected to be signed into law by President Ferdinand Marcos Jr. tomorrow, January 5, 2026, following a 'deliberate' and 'thorough' examination by his Cabinet, according to Budget Undersecretary Goddes Hope Libiran.

"Yes. The review is already on its final stages," Libiran told The STAR in a text message on January 4. Due to the delay, the government will use the reenacted 2025 budget until signing, which Executive Secretary Ralph Recto said would not affect operations. This marks the first reenacted budget under the Marcos administration, similar to 2019 under former President Rodrigo Duterte.

Under Section 25 (7), Article VI of the 1987 Constitution, a reenacted budget is required if the new one is not enacted before the fiscal year ends. Despite ratification, a week is needed to check the bill against the National Expenditure Program (NEP).

Amid the flood control projects controversy, the Department of Public Works and Highways (DPWH) clarified there is no funding for new locally-funded flood control in its 2026 budget. The reported P2.49 billion is for maintenance of existing projects, such as Oplan Kontra Baha, in line with Marcos' directive to streamline spending. "The department is committed to maximizing these resources to mitigate flooding risks despite the fiscal constraints," the DPWH said.

Meanwhile, the People’s Budget Coalition (PBC) and Roundtable for Inclusive Development (RFID) urged Marcos in a January 3 letter to veto P633 billion in 'pork' items, including P243 billion in unprogrammed appropriations and P210 billion in 'soft pork' for aid programs. "Soft pork is composed of ayuda programs at risk of political patronage that reduce our citizenry to begging from politicians," they stated. They called for an executive order on transparent distribution, especially for the P51 billion Medical Assistance to Indigent and Financially Incapacitated Patients (MAIFIP).

Marcos prefers a reenacted budget over one misaligned with his priorities, as stated in his fourth State of the Nation Address. "For the 2026 national budget, I will return any proposed general appropriations bill that is not fully aligned with the National Expenditure Program... even if we end up with a reenacted budget," he said. Officials pledge to keep the budget free from corruption while scrutinizing all allocations.

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