THE Department of Budget and Management (DBM) ordered state-run firms to start preparing their budget proposals for 2027.
Acting Budget Secretary Roland U. Toledo issued Corporate Budget Memorandum No. 48 for heads of government-owned or -controlled corporations (GOCCs), kicking off another one of the preparatory stages for drafting the National Expenditure Program for next year.
He said the budget seeks to “intensify optimization of budgetary support to GOCCs in response to the call to reform the public corporate sector in light of the tight fiscal resources of the government.”
The DBM said the government disbursed P122.83 billion to GOCCs as of the end of November, equivalent to 96.4% of the allocations budgeted for 2025.
Mr. Toledo said proposals from state-run firms will be assessed based on value for money, performance indicators, and consistency with the government’s fiscal consolidation agenda.
“It is emphasized that the agency’s performance, specifically the progress of implementation of funded programs/projects and its corresponding budget utilization, will be a key review factor,” he said.
Mr. Toledo added that the 2027 budget should focus on the efficient use of government resources for nation-building and closing market gaps.
“It aims to maintain the principle of non-preferential treatment, which requires that government resources shall not be used to finance advantages or benefits that directly or indirectly enable GOCCs/GFIs to compete with the private sector,” he said.
Earlier this month he had notified the heads of departments and agencies to start preparing their budget proposals.
For the 2026 budget, the DBM said government agencies’ budget proposals surged to P11 trillion from P9.2 trillion in funding requests for the 2025 spending plan. — Aubrey Rose A. Inosante
