Thank you, Mr. Chair, and to the Committee for this opportunity to present the proposed 2026 budget of the entire DOF family.

As you all know, ang DOF po ang ating “Pambansang Fundraiser”. Trabaho namin na makalikom ng pondo para punan ang mga pangangailangan at pangarap ng bawat Pilipino.

We fund the nation’s progress and bring us closer to our Ambisyon 2040—a prosperous middle-class society, where poverty is eradicated.

And I’d like to stress this: our national budget—the main engine of our growth—is more than just a list of expenses. For every line item, every project, carries a price tag that represents the hard-earned revenues we at the DOF work tirelessly to raise.

That’s why we must look at the budget not just in terms of spending, but also through the lens of revenues.

Next year, our proposed national budget stands at 6.79 trillion pesos. But only 4.98 trillion pesos are supportable by revenues.

Ibig sabihin, ang gastusin ng gobyerno ay aabot sa 18.61 bilyong piso kada araw. But only 13.65 billion pesos per day will be financed by revenue collections. Monday to Sunday. Every 24 hours. Kada bente kwatro oras.

Ganito po kabigat ang kailangang malikom ng DOF araw-araw with our miniscule proposed budget of only 37.78 billion pesos for 2026.

The amount is only 1.09 percent higher than in 2025. And it represents less than one percent of the total proposed 2026 national budget.

To guide us in this herculean task, we have the refined Medium-Term Fiscal Program.

This is our roadmap to keep the deficit in check and the debt sustainable, while creating more jobs, increasing incomes, and reducing poverty.

And we are so far right on target. Over the past three years, revenues have grown at a double-digit pace, averaging 13.8% annually. Tax collections have expanded by 11.5% every year.

Last year, we posted a revenue effort of 16.7% — the highest in 27 years and one of the strongest in Asia. At nagpapasalamat po kami sa ating mga taxpayers sa kanilang ambag para sa bayan.

To finance our budget next year, our marching order is to increase revenue collections by 10.2%. This means we are challenging the BIR and BOC to work harder to meet our targets.

Nagpapasalamat din po kami sa Kongreso at Senado sa pagpasa ng mga reporma na makakatulong sa ating koleksyon.

Aside from these, the DOF is scouting for more resources without inflicting new taxes or bequeathing debts to be paid by future generations.

That is why the DOF hiked GOCCs’ dividend rates to 75% from 50%. And that is why we are privatizing more underutilized government assets.

Our fiscal discipline has earned us a credit rating upgrade and positive outlook from international agencies.

Patunay po ito na malakas ang kumpiyansa ng mga investors sa ating ekonomiya.

And the DOF will continue to safeguard these high ratings by staying true to our fiscal consolidation plan.

If we stay faithful to our MTFF, by 2028, total revenues will hit nearly 6 trillion pesos, climbing further to 7 trillion pesos by 2030.

And we will bring down our deficit to around 4% of GDP by 2028, and further to 3% by 2030.

At the same time, we project the economy to reach 42.6 trillion pesos by 2030, while keeping our debt manageable at 58% of GDP.

Clearly, raising revenues is no joke. That’s why we at the DOF will never tolerate corruption or wasteful spending.

The recent flood control controversy may have cast a shadow on public spending, but this is the start of a cleanup, and we only see upside over the next few months.

The President himself is the whistleblower of this controversy. At malinaw ang kanyang mensahe: We will never turn a blind eye to corruption.

Things will only get better from here, as we have laid down the foundations for long-term growth: the creation of an Independent Commission for Infrastructure, stronger governance, digitalized procurement systems, and full transparency at every level of government.

And justice will be served. In the months ahead, those responsible will be held fully accountable and brought to jail. At the same time, we’re moving decisively to fix Metro Manila’s flooding through stronger coordination with LGUs and the private sector.

All these will build stronger institutions—the backbone of a stable and growing economy.

We are also seeing stronger growth. Under the Marcos Jr. administration, the economy has grown at an average of 5.9%—among the highest in the region.

But the controversy has revealed that not all capital expenditures were translating into growth. And now that we’re plugging those leaks and reallocating funds to high-impact investments—such as education, healthcare, agriculture, and digitalization—we will only grow faster.

And this momentum is backed by low inflation, easing policy rates, strong consumer spending, and a vibrant labor market. Over 50.1 million Filipinos now have jobs, one of the highest in our history.

So, on the part of the DOF, we commit to protect every peso of our taxpayers’ money by ensuring that their taxes are spent on the right things, at the right price, by the right agency, and at the right time.

In the DOF alone, you can be assured that our 37.78 billion peso proposed budget is a faithful reflection of our priorities to go above and beyond in serving Filipinos.

The BIR will receive the largest share of the budget at 19.15 billion pesos. This makes up for more than half, or about 55% of the total DOF proposed budget.

Kung ating titingnan, ang 19.15 billion pesos na ito ay kapiranggot lang kumpara sa kokolektahin ng BIR sa susunod na taon na aabot sa 3.58 trillion pesos. Kaya sulit na sulit po ang budget na ito ng BIR — dahil ang katumbas nito, koleksyon lang nila sa loob ng dalawang araw.

Ang BOC naman ay may proposed budget na 6.91 billion pesos lang, kumpara sa kokolektahin nilang 1.01 trillion pesos sa susunod na taon. Ang katumbas ng kanilang budget ay nakokolekta nila in less than 3 days.

Ang ating Kagawaran ng Ingat Yaman, o BTr, ay may budget allocation na 4.70 billion pesos, kumpara sa bigat ng kanilang responsibilidad na punan ang 1.65 trillion pesos na deficit sa 2026.

In terms of allocation, about 45% of our proposed budget under New General and Automatic Appropriations goes to Personnel Services, 38% to MOOE, about 17% to Capital Outlays, and less than 1% to Financial Expenses. This allocation reflects our focus on workforce upskilling and digital infrastructure.

Digitalization and modernization initiatives remain a high priority across all agencies, with a total budget of 6.9 billion pesos. We will transform processes, integrate systems, and deliver faster, more efficient services.

Now, allow me to talk about the specific budget proposals of each DOF agency.

The BIR’s budget is 8.3% higher than this year’s GAA, totaling 19.15 billion pesos. This is driven by the personnel compensation adjustments under EO 64 and increased operating costs.

The BOC’s budget will decrease by 25.5% to 6.9 billion pesos, mainly because its 2021 Rewards and Incentive Fund—amounting to 3.6 billion pesos—has been moved to the Automatic Appropriations under this year’s GAA.

The BTr’s budget is 4.7 billion pesos, 27.3% lower than in 2025, due to the reclassification of the insurance premiums on government assets to the Unprogrammed Appropriations.

The IC has proposed a total budget of 1.2 billion pesos, 18.6% higher from this year’s level, due to investments in digitalization.

The proposed budget for the DOF-Office of the Secretary is 1.3 billion pesos, a 29.6% increase from this year’s GAA due to our ongoing ICT modernization.

The BLGF budget will increase to 996.20 million pesos or about 128% from this year’s level to support the implementation of the Local Governance Reform Program.

The National Tax Research Center has a proposed budget of 154 million pesos, a 6.8% increase from 2025, mainly due to the salary adjustments under EO 64.

Meanwhile, the proposed budget of the Privatization and Management Office will rise by 21.2% to 134.6 million pesos to support its ICT infrastructure upgrade.

Finally, the Central Board of Assessment Appeals has a proposed budget of 18.4 million pesos, a marginal increase of 1.6% from the year prior.

As I close, let me assure the honorable members of this Committee that this budget proposal adheres to the highest standards of fiscal discipline.

In fact, for four consecutive years, the DOF has earned an Unmodified or Unqualified Opinion from the Commission on Audit.
Ibig sabihin po, malinaw na napatunayan ng ating mga auditor na ang ating financial statements ay tapat, maayos, at naaayon sa itinakdang pamantayan ng financial reporting.

Over the years, the DOF has also consistently proven its efficiency in budget utilization.

As of the end of August, we have achieved a higher obligation rate of 82% and a disbursement rate of 93%.

But let me underscore this important fact: the DOF is no ordinary spending agency. We are the nation’s chief fundraiser—the very lifeblood of government programs. If we were judged by the same yardstick as those who simply spend the funds we raise, our accomplishments and contributions would not even fit on the usual Agency Performance Review scorecard.

To end, let me give this Committee my firm assurance: every peso invested in the DOF and its attached agencies will not only return, but will multiply — doubling, tripling, even growing tenfold — as it goes back to the Filipino people in the form of better infrastructure, better services, and better opportunities.
Na ang bawat ambag ng ating mga taxpayers, bumabalik sa kanila.

So we humbly ask for your support and your trust. Maraming salamat po, and we are now ready to answer any questions. Mabuhay ang Bagong Pilipinas!