Philippines proposes another large increase in defence spending

The Philippines signed in June a contract to procure an additional 12 FA-50PH light combat aircraft from South Korea. (KAI)

The Philippine government has proposed a 2026 defence budget of PHP299.3 billion (USD5.2 billion), the third successive year of double-digit growth amid growing tensions with China.

The new budget – announced on 15 August – amounts to an approximate 16% year-on-year nominal increase, following growth of about 10% and 14% in the 2024 and 2025 defence expenditures.

Philippine President Bongbong Marcos said in comments announcing the annual budget that the increase in spending is aimed at “ensuring the [Armed Forces of the Philippines (AFP)] remains equipped to defend the nation's sovereignty and territorial integrity”.

He said the planned investments include funding for “capacity-building initiatives, [the] modernisation of equipment, and facility enhancements to ensure mission-ready defence units across all domains”.

Budgetary documents issued by the Department of Budget and Management show that the Department of National Defense (DND) allocation for 2026 includes PHP167.2 billion for personnel expenses, PHP94 billion for maintenance and “other operating expenses”, and PHP33.9 billion for “capital outlays”.

These expenses increase year on year by 14%, 19%, and 20% respectively.

Funding for AFP equipment modernisation is also available through the Philippines' long-running Revised AFP Modernization Program (RAFPMP). In 2026 the RAFPMP receives PHP40 billion, the same as in 2025. In 2024 and 2023 the RAFPMP was allocated PHP40 billion and PHP27.5 billion respectively.

Reflecting growing requirements in Manila to secure offshore territory, the 2026 allocations for the Philippine Navy and the Philippine Air Force (PAF) both rise sharply, by more than 80%. The navy's budget climbs to PHP59.4 billion, while the PAF receives PHP59 billion.