The Government of the Philippines has proposed a PHP7.2 trillion (USD118.1 billion) national budget for 2027, representing a 6 per cent increase from the 2026 budget. The proposed spending plan is equivalent to 21.7 per cent of gross domestic product (GDP), with the government seeking to support economic recovery following slower growth and reduced infrastructure spending.
The Department of Public Works and Highways (DPWH) has been allocated PHP644 billion (USD10.6 billion), an increase of 22 per cent from the PHP530 billion allocated in 2026. The department’s funding had been reduced by around 40 per cent from its proposed PHP881 billion allocation for 2026 amid allegations of irregularities in public works projects.
Education remains the largest budget sector, with an allocation of PHP1.15 trillion, although this is 11.5 per cent lower than the PHP1.3 trillion allocated in 2026. Healthcare funding is proposed at PHP353.8 billion, down 21 per cent from PHP448.1 billion, while agriculture is allocated PHP261.7 billion, a 13 per cent decrease from the previous year’s allocation.
Total government disbursements are projected at PHP6.9 trillion in 2027, compared with expected revenues of PHP5.2 trillion. This would result in a fiscal deficit of PHP1.7 trillion, which the government plans to finance through borrowing. The government has set a GDP growth target of 5.0 to 6.0 per cent for the 2027–2030 period.
