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FIVE THINGS TO KNOW

10:45 PM7-minute read

ABOUT THE OCTOBER WATER-RATE INCREASES

Metro Manila households served by Maynilad and Manila Water will see slightly higher water charges beginning October 1. The announced increases are small for many residential customers, but the figures vary by concessionaire and consumption level. That makes it easy to misunderstand a notice expressed only in centavos per cubic meter.

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7:21 AM6-minute read

ABOUT THE NOTE HANDED TO GIBO TEODORO IN SEOUL

Defense Secretary Gilberto “Gibo” Teodoro Jr. was answering questions at the Seoul Defense Dialogue on September 8 when a man handed him a note. He read it aloud, challenged its rejection of the 2016 South China Sea ruling and objected to being interrupted that way.

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9:55 AM8-minute read

ABOUT EL NIÑO AND PREPARING FOR LESS RAIN

It can be raining outside while PAGASA warns about El Niño. That can sound confusing when the immediate problem is a wet road or a flooded field. The two warnings describe different periods: the weather happening now and the rainfall conditions that may develop over the coming months.

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5:30 AM8-minute read

ABOUT THE NEW ARREST WARRANTS AGAINST ZALDY CO, MARTIN ROMUALDEZ AND TWO OTHERS

The Sandiganbayan has ordered the arrest of Zaldy Co, Martin Romualdez and two other accused in the plunder case filed on September 7. By Monday evening, authorities had served Romualdez's warrant and carried out booking procedures at Cardinal Santos Medical Center in San Juan. His arrest is a confirmed development; it does not establish that his three co-accused are also in custody.

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3:15 PM8-minute read

ABOUT THE PLUNDER CASE AGAINST MARTIN ROMUALDEZ

The Office of the Ombudsman filed a plunder case against former House Speaker Martin Romualdez at the Sandiganbayan on September 7 over his alleged involvement in flood-control kickbacks. The accusations have now reached the court that will handle the criminal case. Romualdez denies wrongdoing and remains presumed innocent.

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1:18 PM7-minute read

ABOUT THE NEW SWS POVERTY NUMBERS

Self-rated poverty and food poverty declined in June, but the figures also show how many Filipino families remain under pressure and why lower household budgets do not necessarily mean life became cheaper.

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2:02 PM11-minute read

ABOUT THE CHILDREN'S SOCIAL MEDIA SAFETY ACT

House Bill No. 9965 would bar children below 13 from having social media accounts, require parental consent for users aged 13 to 17, regulate platform algorithms, and impose fines reaching P50 million. It is still being deliberated in the House.

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12:02 PM7-minute read

ABOUT THE SEALED BIR BOX

Marcos authorized the BIR to comply with the Senate subpoena. That did not open the records to the public or prove the unexplained-wealth allegation.

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August 10, 2026 · 11:40 AM7-minute read

ABOUT THE PROPOSED ₱7.2-TRILLION 2027 NATIONAL BUDGET

The record nominal spending plan is not yet law, will require deficit financing, and could change substantially in Congress.

The government is preparing to ask Congress to approve a record nominal ₱7.2-trillion national budget for 2027.

That figure is ₱407 billion, or 6 percent, higher than the ₱6.793-trillion budget enacted for 2026. It is also equivalent to 21.7 percent of the country’s projected gross domestic product.

But the size of the budget is only the beginning of the story.

Here are five things to know.

1

THE ₱7.2 TRILLION IS NOT YET THE FINAL BUDGET

The Cabinet has approved the proposed spending plan, but it has not yet become law.

Under the official budget-preparation calendar, the Department of Budget and Management is scheduled to submit the budget documents to the President on August 12. Submission of the President’s budget to Congress is scheduled for August 14.

The House of Representatives will review the proposal first. The Senate will consider the House-approved bill and may propose amendments. The two chambers will reconcile any differences before sending a final spending bill to the President.

Within constitutional limits, Congress can reduce, remove or rearrange individual allocations and redirect funding among programs. It may not increase the overall appropriations recommended by the President for government operations.

The President can also veto particular items before signing the General Appropriations Act.

In other words, the ₱7.2-trillion ceiling cannot be increased by Congress, but the distribution of the money could change significantly.

WHAT TO WATCH

Watch the House and Senate versions of the spending bill. The most important changes may involve which programs gain or lose funding while the total remains within the constitutional ceiling.

2

THE GOVERNMENT PLANS TO SPEND MORE THAN IT EXPECTS TO COLLECT

The government projects revenues of about ₱5.21 trillion in 2027.

It expects actual disbursements—not total appropriations—to reach approximately ₱6.90 trillion.

That leaves a projected budget deficit of roughly ₱1.69 trillion, equivalent to 5.1 percent of GDP.

The deficit will require financing, principally through government borrowing, potentially supplemented by available cash balances.

Running a deficit is not automatically irresponsible. Governments commonly borrow to fund infrastructure, education, healthcare and other investments that can strengthen future economic growth.

The real questions are what the borrowed money finances, whether projects are implemented properly and whether the economy grows fast enough to keep the resulting debt manageable.

WHAT TO WATCH

Watch the final financing plan, borrowing requirements and interest-payment allocation. A larger deficit becomes more difficult to manage if borrowing costs rise or revenue collections fall below target.

3

THE BUDGET IS BEING BUILT UNDER TIGHTER ECONOMIC CONDITIONS

The government expects economic growth of only 3.5 to 4.5 percent in 2026 before a possible recovery to between 5 and 6 percent in 2027.

It also projects inflation of 4 to 5 percent next year. The lower end is at the top of the Bangko Sentral ng Pilipinas’ 2-to-4-percent tolerance band, while the upper end exceeds it.

The peso is assumed to average between ₱60 and ₱62 against the US dollar, while Dubai crude oil is projected at $70 to $90 per barrel.

These assumptions matter because weaker growth can reduce tax collections, while a weaker peso and expensive oil can increase government operating and infrastructure costs.

If the assumptions prove too optimistic, the government may have to borrow more, delay projects or reduce spending elsewhere.

WHAT TO WATCH

Watch the government’s growth, inflation, exchange-rate and oil-price assumptions during congressional hearings. Updated economic conditions could change projected revenues, costs and borrowing needs.

4

THE ADMINISTRATION IS PROMISING FEWER REDUNDANT AND POORLY PREPARED PROJECTS

The DBM says agencies must demonstrate that proposed projects are justified, implementation-ready and aligned with national and regional priorities.

Priority programs and projects proposed for the regions are also supposed to receive the endorsement of the relevant Regional Development Councils. The stated goal is to prevent national agencies from imposing projects that local governments did not request and may not need.

The government also plans to streamline overlapping programs, review its performance-incentive system, reduce unnecessary operating expenses and rationalize cash subsidies and financial-assistance programs.

These are useful safeguards on paper.

Their value will depend on whether poorly prepared projects are actually rejected—and whether the same standards survive congressional deliberations.

WHAT TO WATCH

Watch whether agency proposals include feasibility work, implementation schedules and Regional Development Council endorsements. Also check whether projects rejected during executive review reappear in Congress.

5

TRANSPARENCY WILL MATTER AS MUCH AS THE FINAL AMOUNT

The proposed budget arrives while authorities continue investigating alleged irregularities in flood-control and other infrastructure projects.

That makes the handling of project lists, congressional amendments, unprogrammed appropriations and bicameral changes especially important.

A large allocation does not guarantee a useful public service. A project can be fully funded and still fail because of inflated costs, weak design, delayed implementation, substandard construction or political interference.

The most meaningful test will therefore be whether the government publishes enough detail for the public to trace how the proposal changes—from the executive version, through the House and Senate, to the final law.

WHAT TO WATCH

Watch for publication of the executive proposal, House and Senate amendments, bicameral conference report and enrolled bill. The documents should make it possible to identify when each major allocation was added, removed or changed.

BOTTOM LINE

If enacted at that level, the proposed ₱7.2-trillion budget would authorize more government spending to support economic recovery and public services. It would also create more room for waste if oversight fails. The headline number is important, but the better measure of the budget will be whether the money goes to projects the country genuinely needs, whether those projects can be completed properly and whether every major change remains visible to the public.

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