The Philippine government has unveiled a proposal to raise its 2026 defense budget to PHP 299.3 billion (USD 5.2 billion), a 16% increase from 2025. This marks the third straight year of double-digit growth, underlining Manila’s urgency to counter China’s growing presence in the South China Sea and strengthen its military capabilities in the wider Indo-Pacific.
At the heart of the plan is the acceleration of Horizon 3 of the Armed Forces of the Philippines Modernization Program, which prioritizes the procurement of multirole fighters, airborne early warning aircraft, and aerial refueling tankers. These systems are expected to transform the country’s airpower by extending detection ranges, bolstering deterrence, and enabling sustained operations over contested maritime zones.
Recent acquisitions—including BrahMos supersonic cruise missiles from India, C-295 transport aircraft from Airbus, and S-70i Black Hawk helicopters from Poland—have already laid the groundwork for a more capable force. The new budget aims to close critical gaps in aerospace power, coastal defense, and maritime strike capability, with Gripen and F-16 jets leading the fighter competition and the Airbus A330 MRTT emerging as a refueling option.
Deployment plans place BrahMos batteries in Palawan and Luzon, directly threatening Chinese surface vessels operating in Philippine-claimed waters. Naval infrastructure upgrades at Subic Bay and Oyster Bay will provide further strategic depth.
The push comes as Chinese maritime militia activity, incursions, and reef militarization continue to shift the balance of power in the South China Sea. Regional neighbors—including Vietnam, Indonesia, and Malaysia—are also ramping up defense spending, underscoring a collective Southeast Asian response to Beijing’s expanding footprint.
If approved, the 2026 allocation will significantly enhance Philippine military readiness, force projection, and interoperability with allies such as the United States, marking a decisive shift from a reactive to a proactive defense strategy.
