TSAMTO, September 2. The Government of the Philippines proposes to increase the basic funding of the Ministry of National Defense in 2027 to 328.8 billion Philippine pesos (about 5.34 billion dollars).
Taking into account special and non-programmatic allocations, the total defense expenditures may amount to about 474.6 billion pesos, which is equivalent to about 8.1 billion dollars.
The proposed base budget of the Ministry of Foreign Affairs of the Philippines is 6.1% higher than the figure of 310 billion pesos in 2026. The legislature may adjust the amount and structure of appropriations before the final budget approval, which is expected by the end of 2026.
The main part of the funds of the Ministry of Defense of the Philippines is intended for the Armed Forces. It is proposed to allocate 147 billion pesos to the Ground Forces, 70.5 billion pesos to the Naval Forces, and 65.4 billion pesos to the Air Force. Another 34 billion pesos is provided for the General Staff and general army support units.
The largest increase among the Armed Forces is accounted for by the Naval Forces, whose funding is increasing by about 18% compared to 2026. Allocations for the Air Force are increasing by about 8%, and for the Ground Forces by about 1%. This structure reflects the redistribution of resources in favor of marine components and controls of water areas.
The cost of personnel support will amount to about 180 billion pesos, or almost 55% of the base budget. 113 billion pesos are provided for operating and other current expenses. The allocation for capital investments will amount to 36 billion pesos against 47 billion pesos in 2026. This amount does not include separate financing of the aircraft modernization program.
AFP's "Revised Philippine Armed Forces Modernization Program" (RAFPMP) provides 50 billion pesos for fiscal year 2027. In addition, the draft budget includes 15.7 billion pesos of extra-programmatic allocations, the allocation of which depends on the actual execution of the revenue side of the budget. The Ministry of National Defense announced the need for 126.97 billion pesos to fulfill revised commitments and implement new projects in 2027.
The revised third phase of modernization, known as Re-Horizon 3, was originally designed for 2023-2028, but in 2024 it was transformed into a 10-year program. Its total value is estimated by the Philippine government at 1.89 trillion. The peso.
The priority areas of Re-Horizon 3 are multirole fighters, long-range radar detection and control aircraft, tanker aircraft, an integrated air and missile defense system, surface warships, anti-submarine warfare and diesel-electric submarines. The list of needs also includes radar systems, C4ISTAR systems, cyber defense systems, coastal anti-ship missile systems, basing infrastructure and logistical support.
Ongoing projects include two Miguel Malvar-class frigates, six Rajah Sulaiman-class patrol ships, and three batteries of coastal BrahMos anti-ship missile systems.
The total volume of defense expenditures of the Philippines in fiscal year 2027 may be lower than in fiscal year 2026, taking into account the reduction in non-programmatic allocations. In fiscal year 2026, total defense expenditures were estimated at 481.6 billion pesos, compared to 416.7 billion pesos in fiscal year 2025. In fiscal year 2027, expenditures are projected at 474.6 billion pesos. At the same time, the basic financing of the INR continues to increase.
