MANILA, Philippines — In a historic shift toward fiscal transparency, the Department of Budget and Management (DBM) has officially opened the “preparation stage” of the national budget to civil society organization (CSO) observers for the first time. Announced on Sunday, May 10, 2026, the move allows independent watchdogs to witness the early-stage Technical Budget Hearings (TBHs) for the 2027 National Expenditure Program (NEP).
This initiative follows years of advocacy from budget watchdogs and comes in the wake of public scrutiny over “secretive” fund allocations in previous years.
Historically, the budget preparation phase—where agencies defend their funding requests before DBM panels—was conducted behind closed doors. Under this new “pilot basis” transparency measure:
- Direct Observation: CSOs can now attend hearings to understand how agency funding ceilings are determined and how priorities are set before the budget even reaches Congress.
- Pilot Agencies: The DBM successfully opened hearings for the DICT and DENR on May 7. The pilot program continues with the following schedule:
- Department of Justice (DOJ): May 11, 2026
- Department of Health (DOH): May 12, 2026
- Dept. of the Interior and Local Government (DILG): May 13, 2026
The budget watchdog Social Watch Philippines (SWP) lauded the move, describing it as a necessary step to rebuild public trust following controversies involving flood control spending and unprogrammed funds.
- Constitutional Right: SWP co-convener Ma. Victoria Raquiza noted that access aligns with the 1987 Constitution’s guarantee of the people’s right to information on matters of public concern.
- Accountability: By observing the “Tier 2” stage (proposals for new or expanded spending), watchdogs aim to flag potential “pork-barrel-like” provisions at the source.
- Vetting Guidelines: Budget Secretary Rolando Toledo indicated that the 2027 budget will undergo stricter vetting, with total proposals expected to fall below the ₱11-trillion mark previously discussed.
The DBM is currently operating within the “overlap” of the budget cycle: while implementing the ₱6.793 trillion 2026 budget, it is simultaneously crafting the 2027 plan.
| Stage | Timeline | Description |
| Tier 1 Hearings | Feb – Mar 2026 | Review of ongoing programs and existing spending. |
| Tier 2 Hearings | Apr – May 2026 | Current Stage: Review of new projects (now open to CSOs). |
| Submission to President | June 2026 | Consolidation of agency proposals for Cabinet approval. |
| Submission to Congress | Aug 2026 | Presentation of the NEP (usually within 30 days of the SONA). |
While celebrating the pilot, transparency advocates are urging the DBM to:
- Make it Permanent: Transition from a pilot program to a standard operating procedure for all government agencies.
- Machine-Readable Data: Publish budget documents in formats that allow for easy digital analysis and public auditing.
- Expand Participation: Increase the number of accredited CSOs permitted to observe the internal deliberations.