DBM sets April 24 deadline for Tier 2 budget proposals

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March 20, 2026 | 12:00am

MANILA, Philippines —  The Department of Budget and Management (DBM) has directed government agencies to submit their Tier 2 budget proposals for fiscal year 2027 by mid-April.

Acting Budget Secretary Rolando Toledo announced the guidelines through a National Budget Memorandum issued on March 16, outlining the priorities for the upcoming budget cycle.

Tier 2 proposals should be submitted through the Online Submission of Budget Proposals System on or before April 24, 2026, he said.

“These priorities, infrastructure, human capital development, food security, climate and disaster resilience and digitalization, among others, are anchored on the President’s eight-Point Socioeconomic Agenda and aligned with the AmBisyon Natin 2040 and the 2030 Sustainable Agenda,” he said.

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.

Earlier, Toledo said the DBM expects government agencies to submit lower funding proposals for 2027, below the P11-trillion plan last year, due to stricter vetting guidelines triggered by the flood control corruption scandal.

The budget chief has also directed implementing agencies to fast-track critical preparatory activities to avoid delays in flagship programs and projects.

This includes feasibility studies, needs assessments, institutional and social preparation, detailed engineering design and right-of-way acquisition.

Amid available fiscal space set by the Development Budget Coordination Committee, Toledo urged departments to tightly prioritize their proposals given the limited fiscal space.

Agencies should limit their proposals to a maximum of five only, he added.

Toledo also noted that absorptive capacity, measured by utilization rates, would be a determinant in securing new appropriations of an agency.

“A low absorptive capacity indicates that the agency is unlikely to utilize additional funds,” Toledo added.

The DBM set the Tier 1 ceiling amount to P3.69 trillion in 2027, P3.27 billion in 2028, and P3.05 trillion in 2029.