Education gets the largest share in the 2027 budget, second year in a row since the Marcos Jr administration moderated its infrastructure priorities after the flood control scandal.
We hear the same familiar pitch from government officials: education is their top priority. A claim easy to make but hard to prove.
Looking past the bold press releases and diving into the fine print of the Php7.2 trillion national budget, a quite different picture emerges.
Despite the hefty Php1.22 trillion allocation, accounting for roughly 17% of the entire national budget, the reality on the ground is that education continues to take a backseat. Debt servicing, heavy infrastructure spending, pork barrel, and even defense continue to take precedence over the basic needs of our schools.
Glaring cuts
Budget cuts across the education sector are impossible to ignore. Overall sector funding actually shrinks by 9%, dropping from a historic benchmark of Php1.35 trillion in 2026 to Php1.22 trillion in 2027.
Despite the celebrated Department of Education (DepEd) topping agency allocations, there is a missed critical detail: the DepEd Office of the Secretary (OSEC) is getting the single largest budget cut among all education agencies. Its funding drops from Php958 billion in 2026 to Php 908 billion under the approved House General Appropriations Bill (GAB) for 2027.
The cuts hit regular programs essential to day-to-day operations and long-term investments. Maintenance and Other Operating Expenses (MOOE) falls from Php207 billion to Php172 billion and Capital Outlays (CO) plummets from Php99 billion to just Php28 billion.
A closer look at the DepEd OSEC’s major functional areas reveals a widespread decline. General Administration and Support falls from Php29 billion to Php27 billion; Support to Operations dips from Php10 billion to Php6 billion; and Overall Operations shrinks from Php909 billion to Php862 billion.
What these cuts mean for students
The only regular DepEd program to see an increase is the Support to Schools and Learners Program (covering Kindergarten through Senior High School). It goes up from Php716 billion to Php766 billion. However, student enrollment was previously projected to surge from 24 million to 27 million for School Year 2026–2027. Enrollment growth outpaces the increase in funding, meaning what appears to be a budget increase actually translates into less spending per student.
The situation of school facilities is even worse. The Php30 billion proposed in the 2027 National Expenditure Program (NEP) for basic facilities is slashed to Php27 billion in the House GAB—a 67% plunge from the Php85.4 billion 2026 General Appropriations Act (GAA) . Looking specifically at actual classroom construction, replacement, and completion reveals that the budget falls 60% from Php67 billion to Php27 billion.
During the House budget hearing, DepEd Sec. Sonny Angara noted that the 2026 Php67 billion budget funded around 18,000 classrooms, putting unit cost at roughly Php3.7 million per classroom. With 143,000 classrooms still needed nationwide, the Php27 billion allocation will build just 7,274—barely making a dent in the massive shortage.
Worse, according to Sec. Angara, Php6-7 billion of the allocation must also go toward repairing typhoon-damaged schools, leaving even less for new classrooms.
Underfunded response to the learning crisis
To tackle the ongoing learning crisis and boost international assessment scores, the government targets the following programs:
- National Assessment Systems for Basic Education (Php541 million)
- Basic Education Curriculum (Php2.7 billion)
- Curricular Programs, Learning Models, Standards and Strategy Development (Php7.5 billion)
- National Literacy Policies and Programs (Php15 million)
- Early Language Literacy and Numeracy (Php106 million)
- Learning Tools and Equipment (Php2.8 billion)
- Textbooks and Instructional Materials (Php6.4 billion)
- Computerization Program (Php2.6 billion)
- Basic Education Facilities (Php27 billion)
- Academic Recovery and Accessible Learning (ARAL) Program (Php350 million)
These programs amount to Php50 billion, just 6% of DepEd’s total budget. That amounts to a mere Php1,881 in direct investment per student, hardly enough to address the country’s deep learning crisis.
Minimal investment in teachers
Teachers receive almost no structural support in the budget proposal. Despite an estimated shortage of over 14,274 educators, the 2027 GAB allocates zero funding for creating new teaching positions.
Of the Php12 billion allocated for 135,000 promotions, 100,000 slots will merely clear the backlog from previous years, leaving just 35,000 new career advancement opportunities. There are no proposed salary increases, and the Personnel Economic Relief Allowance (PERA) goes up by just Php500 per month.
Education privatization
Constrained public budgets open the door wider to private sector involvement. This is most evident in classroom construction under Phase III of the Public School Infrastructure Project (PSIP III), which relies on public private partnerships (PPPs) through a build-lease-transfer arrangement, essentially a “build now, pay later” model.
Under PSIP III, an allocation of Php105.7 billion is targeted to build 16,459 classrooms (each equipped with a teacher’s desk and 45 armchairs) across 1,095 schools in Regions I, II, III, IV-A, IV-B, V, CAR, and NCR. The cost per classroom rises to approximately Php6.4 million, roughly double the standard government built units, which ranges from only Php2-3 million. This shows that PPP increases the cost.
Meanwhile, when pressed about inadequate funding for specialized needs, such as Inclusive Learning Resource Centers (ILRCs) or Last Mile Schools, DepEd officials repeatedly turn to private sponsorship through the Adopt-a-School Program as their default solution.
Shrinking support for higher education
The funding squeeze extends far beyond basic education. The Commission on Higher Education (CHED) faces a 19% budget cut, falling from Php47 billion to Php38 billion. Both of its primary programs – the Higher Education Regulation Program and the Higher Education Development Program – suffer significant cuts.
Out of 113 State Universities and Colleges (SUCs) nationwide, 45 face direct budget cuts under the House-approved GAB.
Patronage, after all
While core operational budgets face heavy cuts, discretionary funds and politically branded programs saw noticeable boosts. The CHED’s Tertiary Education Subsidy and Tulong Dunong Program get Php2.1 billion and Php1.7 billion, respectively.
The fund for scholarship program under the political brand Bagong Pilipinas, the Bagong Pilipinas Merit School Program, also rises from Php634 million in 2026 to Php1.5 billion in 2027. The Contingent Fund for the education sector, which is also a discretionary fund, surges from Php26 million in 2026 to Php1.2 billion for 2027.
Despite official statements, the 2027 national budget deprioritizes education needs. It lays bare the gap between promise and priority: education takes a backseat, while private interests and political patronage take center stage.
