Agencies told to ready Tier 2 budget submissions

MANILA, Philippines — The Department of Budget and Management (DBM) will soon ask state agencies to submit their proposals for new or expanded programs now that the initial tier for budget allocations has been finalized.

Under the government’s two-tier budget process, ongoing spending is considered in Tier 1 and proposals for new and expanded spending are evaluated in Tier 2.

Budget Secretary Amenah Pangandaman said the DBM is now working on the Tier 1 budget submission of government agencies.

“We are just cleaning up Tier 1. And then agencies can submit their Tier 2 proposals,” Pangandaman said.

“By the end of the month, they can start submitting. We are still on track as to the budget process and timeline,” she said.

After Tier 1 is completed, DBM would know what the ongoing spending requirements for existing activities and projects will be for the next three fiscal years.

These will be used to update the expenditure plan and fiscal strategy.

The government can then calculate the fiscal space that will be available to fund new projects or scale up existing activities in terms of scope, timing, number or type of beneficiaries, design and implementation method.

Based on the government’s fiscal program, the 2026 national expenditure program is pegged at a record P6.793 trillion.

Next year’s planned budget is 7.3 percent higher than the 2025 appropriation of P6.326 trillion.

The 2026 budget aims to focus on key priorities that include managing the lingering effects of high food prices and safeguarding the purchasing power of Filipinos.

Next year’s spending plan will also continue to support infrastructure investments and sustain the government’s efforts to digitize public financial management to boost bureaucratic efficiency and drive transparent service delivery.