DBM rules for 2028 budget require reasons for shelving local projects

National government agencies must explain why they reject, delay or modify regional development projects under new guidelines for preparing the proposed 2028 national budget, a move aimed at making spending decisions more transparent and responsive to local needs.

The Department of Budget and Management (DBM) said on Sunday the rules would require agencies to report how they considered proposals from regional development councils (RDCs), local government units and other stakeholders before setting their budget priorities.

The guidelines, under Joint Memorandum Circular No. 1, series of 2026, signed by the DBM and the Department of Economy, Planning, and Development on Oct. 8, allow regional consultations two to three months before the National Budget Call, usually issued in December or January.

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This early engagement is intended to give local proposals a chance to be considered while agencies are still deciding which projects to fund.

However, endorsement by an RDC or other stakeholders will not guarantee funding on proposed programs, activities and projects (PAPs).

“Regional voices must be heard before budget decisions are made—not after,” Budget Secretary Kim Robert de Leon said.

“Our RDCs, LGUs, and regional stakeholders are closest to the realities on the ground. You know where the gaps are,” he added.

The DBM said local institutions are often better placed to identify urgent needs, including classrooms, hospitals, roads, agricultural support and other essential services.

Starting Oct. 13, agencies will begin setting priorities for their 2028 budget proposals, followed by regional consultations, RDC review and prioritization, and consolidation at the agency level.

Regional proposals must reach agency central offices by Dec. 18. Before submitting their budget proposals to the DBM, agencies must complete reports consolidating and prioritizing the projects.

They must also inform RDCs and regional offices whether proposed projects were included, adjusted, deferred or otherwise addressed, and provide explanations where appropriate.

Agencies will retain the final say, taking into account development goals, available funds, project readiness and budget rules.

“The objective is not to promise funding for every proposed project, but to ensure that regional needs receive timely, serious, and transparent consideration,” the DBM said.

The circular covers national departments, agencies, state universities and colleges, and other government bodies funded through the national budget. It excludes personnel costs, mandatory obligations, routine operating expenses and projects not subject to regional prioritization. INQ