Philippines Pitches 6.3% Defense Budget Hike for 2027, Prioritizes Drones and Missile Corvettes

Philippine Defense Secretary Gilberto Teodoro Jr. told a budget hearing in the House of Representatives on August 25, 2026 that the Department of National Defense is seeking a 325.1-billion-peso ($5.27 billion) budget for 2027, a 6.3% increase from the 305.5-billion-peso ($4.95 billion) allocation approved for 2026. The proposal includes 50 billion pesos ($810.4 million) for the AFP modernization program — 25% higher than the current year — with priority on expanding unmanned aerial and unmanned surface vessel forces and acquiring additional guided-missile corvettes. Teodoro declined to name specific drone systems under consideration, citing classified and sensitive information, and said the Philippines has been in contact with several countries with drone expertise, noting the US recently provided four solar-powered sea drones for maritime surveillance. 'As we mature on the cycle, then we can acquire more,' Teodoro said, adding capability growth depends less on personnel than on 'the integration into the operation, what do you do with them and how do you use them.' Separately, DND officials told Congress the full AFP modernization requirement for 2027 — including Horizon 2/3 multi-year contracts and priority new acquisitions — totals 126.97 billion pesos, leaving a 76.97-billion-peso funding gap against the proposed 50-billion-peso allocation; Teodoro noted several Horizon 2 projects had to be cancelled for being obsolete amid rapidly evolving threats.