House Bill No. 8059 - Amending P.D. 415 for AFP Modernization

Funding the largest modernization undertaking in the recent history of the Armed Forces of the Philippines also comes with the budgeting element in mind, where based on the recent enactments for budget, is not enough to fund multiple big-ticket projects like the long-awaited multirole fighter jets that the Philippine Air Force has long sought to aspire.

This entails the need for seeking multiple financial arrangements to make it possible, but with current legislative limitations, this avenue is insufficient in accomplishing the materialization of such large acquisition projects that each service branch of the Philippine Armed Forces comes to mind. That exact limitation is the one that the current bill in the House of Representatives tries to achieve.

AT A GLANCE

The bill, amending the old Presidential Decree, will help the Armed Forces of the Philippines finance its large, key big-ticket projects it has in the pipeline, especially the ones beyond the annual budget.

‘Defense is never cheap’. This is a quote that always comes with the plans that the Department of National Defense and the Armed Forces of the Philippines have for buying large acquisition projects that usually bear a corresponding expensive price tag. 

And so far, several projects that were once unattainable became the norm in the country’s defense procurement landscape, with the purchases of large naval frigates and FA-50 lead-in fighter trainer jets being the product of such deals amounting to billions of pesos.

Currently, the Armed Forces of the Philippines embarks into its largest acquisition project yet, one that involves the purchase of the package that forms part of the multi-billion peso program of the Philippine Air Force, which is the one regarding its multi-role fighter jets. 

This acquisition project comes with a call for a comprehensive package from none other than the Secretary of National Defense himself, whereby various financing schemes and approaches outside the annually allotted budget are under consideration.

As previously discussed on the topic published on this website relative to the multirole fighter jet package proposal coming from the Department of National Defense, one primary obstacle that kept them and the Philippine Air Force into availing the soft loans and other equally arranged financial schemes is the limit imposed by the Presidential Decree 415, better known as the ‘Authorizing the Secretary of National Defense to Enter Into Defense Contracts to Implements Under the Self-Reliance Defense Programs and For Other Purposes’.

The said provision of the law limits the amount of the financial scheme needed for a modernization project to materialize, whereby it is currently limited to around US$ 300,000,000.00 to fund a modernization project. 

For context, the budget needed for at least twenty (20) F-16 Viper Block 70/72 fighter jets as presented by the Defense Security Cooperation Agency or DSCA is at around US$5.58 Billion, in which it is well beyond the limits imposed by the said presidential decree.

With the current limitations restricting the Armed Forces of the Philippines from undertaking large monetary amounts of financial packages to fund an acquisition project well beyond the figures presented through the annually enacted General Appropriations Act, the calls for the revisions over the presidential decree resonates well to the current urgency of the country’s defense posture in the region where a member of the House of Representatives provided a draft bill that is meant for this very purpose.

THE HOUSE BILL

Letterhead of the said House Bill.

The House Bill No. 8059 contains a four-page document filled with provisions and guidelines that will serve as a primary basis for soft loan arrangements that the national government will undertake related big-ticket defense acquisition projects that are beyond the capacity of the annually enacted general appropriations act. It is also here that introductory amendments are within this presentation, giving clear emphasis to its intent to revise the provisions stipulated in the old presidential decree.

In its explanatory note that covered at least two (2) pages of the entire document, the bill highlighted the inadequacies that the annually enacted General Appropriations Act in funding the Revised AFP Modernization Program, in which the overall increase in the defense budget does not suffice the requirements needed by the Department of National Budget for its pipelined acquisition projects. The primary bill’s premise is in authorizing the government to undertake soft loans with higher allowable amounts.

The bill, while highlighting the said inadequacies, also acknowledges the efforts provided by the previous legislation related to the improvement of the overall war-fighting capabilities of the Armed Forces of the Philippines, especially the current Revised AFP Modernization Program or the Republic Act 10349 that mandates the government to provide specific allotment for its implementation, and its predecessor the Republic Act 7898, which was the original 1990s-era AFP Modernization Program.

Ultimately, it aims to fix the limitations imposed by the enacted Presidential Decree No. 415 regarding the maximum allowable amount in taking soft loans and similarly arranged financial packages, whereby that said ceiling will get the needed increase that actually reflects the realistic requirements that the Armed Forces of the Philippines currently have, compared to the presented figures that reflect the monetary value of when the old presidential decree went into effect way back 1970s.

The next sub topic will cover the specific figures provided in the proposed bill that will revise the presidential decree, providing an added perspective on how the new maximum monetary value converts into an actual acquisition project that the Armed Forces of the Philippines actively pushes, especially when compared against its most expensive modernization projects that it has in pipeline. The projects provided will use the initially approved budget for the contract as a measurement for this study.

IN THE FIGURES REPRESENTED

The provision in the House Bill increased the cap for foreign-based military loans to at least US$1 billion.

One primary contention as to the purpose of the push for the proposed House Bill No. 8059 on the revisions over the Presidential Decree No. 415 is on the maximum amount allowable for the national government to secure a soft loan or similarly crafted financing scheme from overseas financial institutions and governments that propose this scheme, enabling the Philippine government to fund more military-based projects while retaining the safeguards that the said legislation wants to achieve in limiting this practice.

Under the said presidential decree, the maximum allowable amount for the government to undertake such financing schemes originating from overseas financial institutions and government-to-government offers comes with a smaller amount, which specifically emphasizes that it will only allow soft loans and other financing arrangements to around US$300 million, which is a small amount at the time this article published in 2026, given the foreign exchange movements and inflation being the primary factors.

For context, the exchange rate between the US dollar and the Philippine peso in 1974 - the year when the presidential decree has passed, was at Php 6.73 to Php 7.03 throughout the year, which were almost equally valuable compared to the current exchange rate of US$1.00 = Php 60.83 as of August 8, 2026. Another factor at play is inflation, whereby the amount of US$300 million in 1974 is now equated to US$2,032,162,271.81 or US$2.032 billion, which made the old presidential decree obsolete to deal with current needs.

With the maximum cap amount allowed for ‌soft loans still stuck at US$300 million, while its actual amount in 2026 is now at US$2.032 billion that includes inflation, makes the House Bill No. 8059 still insufficient for its US$1 billion (Php 60.83 billion) maximum cap amount, yet the said value is still decent enough for several modernization projects that the Armed Forces of the Philippines pushes, although having another billion to include in the house bill that realistically reflects inflation will be of great help.

The values presented and the context that came relative to the presented calculations on both of the currency exchanges and inflation that incur through at least five decades plays an important part in discussing this topic, as the next part will present the actual figures for several of the key big-ticket projects that the Department of National Defense aims to push but still lingering in a limbo, as limited available budget restricts some of these projects from pushing through the grueling materialization phase.

PROJECTS THAT MIGHT RELY ON THE BILL’S ENACTMENT INTO LAW

One primary project that might benefit in this amendment of PD 415 is the Multirole Fighter Jet Program of the Philippine Air Force.
Image by 대한민국 국방부 - Ministry of National Defense of the Republic of Korea 

In the recent developments surrounding the Revised AFP Modernization Program and its implementation, there are a multitude of big ticket projects that any from the three service branches of the Armed Forces of the Philippines that might need the enactment of the amendments pushed for the Presidential Decree 415, just for its implementation to push through. The said enactment is important for the government to undertake soft loans and financing under the expanded legality it aims to achieve.

One primary modernization project that might benefit from this enactment is the Philippine Air Force’s multi-role fighter jet acquisition program, although the amount sought in the proposed package pushed by the Department of National Defense might have likely exceeded when compared to the maximum allowable amount for the government to avail of soft loans and similar-type financing. For context, the DND unveiled information that it requires at least Php 400 billion for three (3) MRF squadrons.

In the amount presented, basing the amendments of the Presidential Decree 415 to the actual inflated price of US$300 million in 1974 to at least US$2 billion in 2026 might have helped the Philippine Air Force secure at least a squadron or two (2) multirole fighter jets, plus the packages that might have come with the offer depending to the aerospace company that made an offer and the perks that might come with it. For example, the DSCA offer for F-16 Vipers intended for the Philippines has the price tag of US$5.58 billion, which is likely insufficient for the bill amendment to cover.

Another modernization that will probably benefit from this enactment is the Submarine Acquisition Project of the Philippine Navy, as this also went to the sidelines as the naval service branch currently focuses on adding more surface vessels instead like with its current development of securing the second (2nd) and potentially the third (3rd) batches of the Miguel Malvar-class frigate. The proposed price for the project amounts to Php 70 billion or US$1.3 billion, depending on the source.

Given the presented figures on each aforementioned modernization projects, getting a US$1 billion maximum allowable amount for the government to avail for its capacity-building of the Armed Forces of the Philippines is insufficient, whereby securing at least US$1 billion more on top of the said allowable amount might suffice for the defense establishment to get a preferable offer for the said presented amount. Perhaps the initial maximum amount on the house bill requires ‌additional consideration.

IN THE FOREGOING

The status of the bill is still pending on the committee level within the House of Representatives.

Currently, the said house bill does not go beyond committee level at the time of publishing this article, as it is still pending in the Committee of National Defense and Security as of March 2026 (see image above). 

This basically means that its fruition is still far from realization, as it is where many inputs in modifying the bill’s provisions such as increasing the maximum allowable amount to avail a soft loan to at least US$2 billion, with the inflation rate correlated to the original US$300 million as the primary basis.

The lack of movement in this legislation, along with the absence of any mention surrounding national defense or in having this house bill counted as a priority during the President’s State of the Nation Address (SONA) on July 27, 2026, makes this legislative push for amending the current Presidential Decree 415 less likely, as the national government’s national priority emphasizes more on providing social services and infrastructure, just as usually expected every fiscal year.

This leaves the current push for the acquisition of multirole fighter jets for the Philippine Air Force and submarines for the Philippine Navy in a precarious position, whereby there is a risk that the plans and programming for both projects might collapse, with reasons pointing to both the lack of available budgetary allotments as specified in the annually enacted General Appropriations Act, and the lack of movement in this legislation that might enable the executive branch to enter defense deals with soft loans in mind.

With the limited budgetary allotment intended for the Revised AFP Modernization Program, as in the 2027 National Expenditure Program where it only has the total amount Php 50 billion, which might even decrease as it faces scrutiny within the plenary halls of both the House of Representatives and Congress, the options provided to the entire defense establishment might limit itself to just buying surface assets and light FA-50 fighter trainer jets, which might not suffice for territorial defense.

All it takes now is for the movement of the House Bill No. 8059 to push beyond committee level and even to the interpellations of the plenaries until such a point that it reaches the president’s desk for it to get a signature that effectively makes it a law. 

For now, the lack of urgency only restricts the planners within the defense department in expanding the capabilities of the Armed Forces of the Philippines, one that is badly needed when facing a far more advanced adversary, all in the name of minimum credible defense posture.

(c) 2026 PDA.

Published from a station in Eastern Visayas. 

Share:

Read More

The Need For Expanding Primary Philippine Naval Facilities

In discussing defense-related topics, acquisition projects relative to buying military hardware has always come as a norm, especially that the Revised AFP Modernization Program itself emphasizes the need of expanded firepower capabilities that align with territorial defense posturing of the Philippine government at-large, with it being the primary policy statement under the Comprehensive Archipelagic Defense Concept framework.

This topic will talk things other than getting the materials and specific weaponry needed to implement the Armed Forces of the Philippines' core mandate, and instead will deal with one key area that needs full development when the acquisition spree is still ongoing at the time this article publishes. And this refers to the current need for facility expansion, starting with the naval service branch of the Philippine military.

RAPID FLEET EXPANSION

The Philippine Navy is experiencing its rapid fleet expansion as it expects the commissioning of additional ships to its fleet composition in the next few years.
Image from the Naval Forces Central Facebook page.

Since the Revised AFP Modernization Program started in 2013, the Philippine Navy experienced its fleet expansion through the years up to the present time this article publishes in this website, whereby the service branch’s current fleet composition primarily composed of vessels bought from at least fifteen (15) years or less, effectively decommissioning most of its remaining World War 2-era vessels that comprised the fleet before the modernization acquisition spree took place.

Previously bought vessels that are now part of the Philippine Navy’s Offshore Combat Force units from the turn of the 2010s are the following warship classes: three (3) Del Pilar-class offshore patrol vessels (previously classified as patrol frigates) which were Hamilton-class cutters of the United States Coast Guard, one (1) Conrado Yap-class corvette, two (2) Jose Rizal-class guided missile frigates, and two (2) Miguel Malvar-class guided missile frigates.

Added to the list are the vessels belonging to the Philippine Navy’s Sealift Amphibious Force, ‌which this includes the two (2) Tarlac-class Landing Platform Docks bought from PT PAL Persero of Indonesia, and five (5) Ivatan-class landing crafts, which are basically former Balikpapan-class patrol crafts from Royal Australian Navy. Also, the Littoral Combat Force receives the Acero-class Fast Attack Interdiction Craft - Missile (FAIC-M), and the succeeding variants of the multipurpose attack craft (MPAC).

In the active pipeline of acquisition, the Philippine Navy receives two (2) Rajah Sulayman-class offshore patrol vessels out of six (6) ordered from HD Hyundai Heavy Industries, plus two (2) additional Miguel Malvar-class guided missile frigates ordered under the Full Complement Acquisition Program. Also included in the active pipeline is the likely transfer of the Abukuma-class destroyer escorts to the Philippine Navy from the Japan Maritime Self-Defense Force.

With the significant increase in the number of large hulls of eighty (80) meters above within the Philippine Navy’s own fleet, the question of facilities that will accommodate is unavoidable, as this usually comes as a follow-on question in a logical scheme of things of operating such capital naval assets that defend the country’s territorial and exclusive economic zone waters. And in terms of naval facilities and operating bases, the answer usually lies way beyond the recognizable waters of Naval Operating Base Subic.

DEFINING A NAVAL BASE AND OTHER FACILITIES

A naval operating base or station ideally comes with facilities that can sustain both naval assets and the personnel who own its planks, regardless of nomenclature.
Screenshot from Naval Shipyard 78th Anniversary AVP

When defining a full naval base or facility, one that comes to mind is‌ how the primary one in Subic comes that is relative to its structure and its full description, as what the Philippine Navy did was to take a portion of a former South Korean shipyard that since then bankrupted and then divided into parts, with the other parts of the former shipbuilding complex occupied by the likes of HD Hyundai Heavy Industries Philippines, a subsidiary branch that produces full naval vessels for the fleet.

At its basic definition, a naval base is an area of command for a naval force assigned to the area, and also serves as a primary hub that provides the logistical, administrative, and operational requirements needed in operating a fleet, ensuring its prolonged sustainment of naval support for maritime security operations needed for an archipelagic nation like the Philippines. Of course, this definition also intertwines what defines a naval station in terms of nomenclature that describes it.

Sticking to the nuances that will appropriately describe a Naval Operating Base in the Philippine setting, it is a primary hub that has the aforementioned features and attributes as already provided in its said basic definition, plus added berthing spaces for multiple naval assets of the fleet of large sizes to dock. The added space is a necessity, especially with the new, larger hulls that the service branch slowly introduced to the fleet as part of the ongoing capability expansion plans under its sail plan initiative.

Typically, a Naval Operating Base has expanded capabilities than that of the Naval Stations that the Philippine Navy has across the country, as the former usually come with facilities that can actually maintain the naval vessels that the service branch has, with personnel belonging to the Naval Shipyard unit providing the support mechanisms and expanded facilities required in sustaining both the ships and its personnel, along with providing additional space for berthing warships that moors in dedicated piers.

In comparison, a naval station in the Philippine Navy’s setup, setting aside Naval Station Pascual Ledesma - Fort San Felipe in Cavite (see image above), usually comes as a small naval installation deployed in areas across the country, with facilities sufficient to accommodate smaller vessels and at least one (1) or two (2) large naval assets of the Offshore Combat Force. While it might have facilities that can maintain naval vessels, its scope limits itself only to small vessels assigned to a naval station.

PLANNED NAVAL FACILITIES OTHER THAN CAVITE AND NOB SUBIC

Aside from NOB Subic and Naval Station Pascual Ledesma Fort San Felipe, the Philippine Navy aims to further develop Naval Station NABASAN, Naval Base Rafael Ramos, and Naval Support Base Misamis Oriental.
Screenshot from Naval Shipyard 78th Anniversary AVP

In the audio-visual presentation of the Philippine Navy’s Naval Shipyard unit, there were one (1) existing naval operating bases that is currently undertaking comprehensive and expanded construction works, one (1) expanded wharf near the vicinity of an existing naval operating base, and one (1) planned naval operating base in Mindanao. These are the Nabasan Wharf, Naval Operating Base Rafael Ramos in Mactan, Cebu, and the future area within PHIVIDEC Industrial Estate in Misamis Oriental.

The Nabasan Wharf is a single naval facility situated just southeast of Naval Operating Base Subic and near the vicinity of the Subic Bay International Airport, of which the Philippine Navy has a plan to provide an expanded pier that will add the capacity over the space available in the Naval Operating Base in the area, while having an added facility that will provide extensive maintenance and logistics to the fleet vessels, minimizing the concentration of activity to the Naval Operating Base within the Subic Bay area.

Meanwhile, the Naval Base Rafael Ramos is a naval facility that is currently undertaking construction works, sitting in the area southeast of Cebu’s International Port and on the Island of Mactan facing the shorelines of Cebu City itself. This is where Naval Forces Central currently operate from, as the current plan includes reclamation works that will increase the land area of the naval base, with facilities ranging from added piers for mooring, drydock and other maintenance facilities, and barracks for personnel.

Finally, the future naval base sitting within the PHIVIDEC Industrial Estate in Misamis Oriental will come as the expanded footprint of the Philippine Navy’s complex facility will accommodate the extensive support of its troops and personnel, and will probably be the one sitting in the Mindanao area. 

Owned by the Philippine Veterans Investment Development Corporation or PHIVIDEC, the Industrial Estate in Misamis Occidental is the one that the Defense Department aims to purchase, intended for the purpose mentioned.

The two naval facilities remaining that are on the map are both the Naval Operating Base Subic itself and the Naval Station Pascual Ledesma Fort San Felipe in Cavite, of which each aforementioned naval facility will get its upgrade that will serve the intended purpose of providing expanded care for the Philippine Navy vessels respectively belonging to both the Offshore Combat Force and the Littoral Combat Force, ensuring the smooth flow of operations resulting from the upkeep of the fleet and its personnel.

THE PLEA FOR EXPANSION

The future naval base in PHIVIDEC Industrial Estate in Misamis Oriental still awaits development.
Screenshot from Naval Shipyard 78th Anniversary AVP

While the plans presented by the leadership for improving and expanding the footprint of the Philippine Navy across the country come as a welcome development on their own, the pace at which the developments undertaken at the time this article has published presents the underlying concern, specifically regarding to its materialization timeline as compared to the fast turnout of the newly produced hulls that the service branch currently has in its timeline.

Apparently, it points to the complete absence of any development in the future PHIVIDEC Industrial Estate in Misamis Oriental citing the need for land titling, along with the slow progress of both the reclamation and construction of key facilities in Naval Base Rafael Ramos in Mactan Cebu. 

Both of which might present additional problems down the road, especially in of accommodating large vessels belonging to the Offshore Combat Force in terms of infrastructure for mooring and extensive maintenance purposes.

The presented slow overall progress and absence, if lack of development thereof, presents a problem particularly that the service branch has multiple acquisition projects that is currently in the queue, and is likely to get into active service five years from the time this article gets published. Currently, there are still four (4) offshore patrol vessels in production on top of two (2) already in service, plus the added order for two (2) additional full complement frigates along with the plans of transferring several Abukuma-class destroyer escorts and some other hull that the service branch has plans of in the future.

Going further into ongoing plans for development, there were expansion plans that did not come to fruition, as naval facility-building has ties to the primary key acquisition program of the Philippine Navy that has prospects for ‌expanded capability building. 

One of the said proposals presented involves Naval Group, a French shipbuilder, whereby they gave a facility development proposal for Naval Operating Base Subic plus a submarine pen attached to its Scorpene offer for the service branch’s Submarine Acquisition Project.

Of course, the shortcomings mentioned do not dismiss the ongoing efforts of the leadership within the service branch and the Armed Forces of the Philippines at large in expanding its footprint in the country and in plans of adding facilities for added logistical and maintenance purposes, although the acknowledgement presented between the timeline difference of introducing new hulls to the fleet and building the facilities that can accommodate and upkeep such hulls is a necessity for its immediate resolution.

LOOKING FORWARD

While part of the Philippine Navy's naval facilities expansion, Naval Detachment Oyster Bay deserves its own separate topic.
From Prime Marquez Portfolio WordPress.

Modernizing the Philippine Armed Forces goes beyond just talking about the specifications of military hardware or even the numbers that the end user from any of the three service branches of the organization, as the rationale of procurement also likely comes with the consideration not only with the sound doctrine that the Philippine military tries to achieve, but also on the current availability of facilities and the plans laid into expanding it to accommodate the expansion of bought military hardware.

The ongoing plans of the Philippine Navy into expanding its existing naval facilities and even going further than just establishing new ones serve as a testament of their ongoing pursuit of an enlarged footprint, aiming that an expanded coverage will help the service branch carry out their intended mandate, ensuring smooth operations of their naval assets maintained into prospective additional facilities for upkeep, while complementing the presence made by multiple naval stations dotted across the country.

Of course, while this topic only entails the expansion of the service branch’s primary naval facilities as mentioned, there are other areas in the country that sees development that have not discussed thoroughly in this article, such as the case of ongoing expansion taking place in Naval Detachment Oyster Bay that involves a dedicated facility intended for unmanned surface vessels or USVs. Given its unique nature, the developments relating to the Palawan-based naval detachment will come with its own discussion.

Focusing once again on the aforementioned primary naval facilities mentioned, there is a mix of optimism and a plea where, in summary, comes with the intention that the ongoing developments surrounding the planned expansions of existing naval bases and opening additional ones should have the implementation with time element into consideration, as the pace of modernization comes not only with the timely delivery of vessels under the contract but also on the overall readiness in having available facilities for its sustainment.

Ultimately, the expansion of the primary naval facilities of the Philippine Navy and the service branch’s footprint of an expanded presence for its sustainment infrastructure across the country comes alongside its ongoing pursuit of fleet expansion aligning to the ongoing Revised AFP Modernization Program, as its establishment comes as equally important to the procurement of highly capable hulls packed with firepower that is a usual theme among the discussions surrounding military defense and security at-large.

(c) 2026 PDA.

Published from a station in Eastern Visayas. 

Share:

Read More

Type 88 Anti-Ship Missiles for the Philippine Military?

The activities that have taken place during the Joint Exercise Balikatan 2026 introduced a lot of first instances that are unthinkable in the previous iteration of the annually conducted exercise, as a new active participant of the exercise deploy their coastal-based anti-ship missile platform, that might improve the capabilities of the Philippine Armed Forces, especially on the period where arms sales from this country likely getting expanded in the upcoming years.

FOR THE FIRST TIME

A Japanese Ground Self-Defense Force Type 88 surface to ship missile launched from its launcher during the Sinking Exercise phase of the Joint Exercise Balikatan 2026.
From the Defense Visual Information Distribution Service (DVIDS).

Every year, both the Philippines and the United States, along with other countries that have either taken part in a limited capacity or on an observer status, engaged in a primarily bilateral exercise between allied nations that are usually taking place at around April and May of every year. 

This refers to the Joint Exercise Balikatan, whereby both countries, along with others taking part, get an opportunity that involves interoperability of new capabilities, camaraderie, exchanges of subject expertise, among others.

But the 2026 iteration of the exercise provided a primary opportunity for another country to take part in this activity, alongside Filipino and American troops that are part of what counts as a routine bilateral exercise conducted annually. 

For the first time, the Japan Self-Defense Force or JSDF took part in this Joint Exercise, whereby they showcase existing capabilities in their inventory, aside from actually deploying its troops and equipment in the country for the first time since the Second World War. 

The first time participation took place when both the Philippine and Japanese governments signed and ratified the Reciprocal Access Agreement or RAA in 2024 and 2025 respectively, enabling the militaries of both the Philippines and Japan to get deployed on both countries’ territorial domain, particularly emphasizing more on military exercises such as the Joint Exercise Balikatan where like-minded nations take the opportunity of improving the needed interoperability between the militaries of both nations.

With that first time also comes another opportunity for the Japan Ground Self-Defense Force to field its coastal-based anti-ship missile system, whereby they take part on the sinking exercise (SINKEX) phase of the entire joint exercise, involving the former Philippine Navy vessel the BRP Quezon (PS-70), an Auk-class minesweeper during the Second World War where it served as a patrol corvette within the naval service branch until its decommissioning in 2021.

In sinking, the Japan Ground Self-Defense Force fielded the Type 88 anti-ship missile system, whereby a launcher unit fired at least two (2) missiles in a salvo, effectively hitting the former BRP Quezon as a target during the sinking exercise phase. 

This resulted in extensive damage inflicted on the decommissioned Second World War ship, which effectively showcased the capabilities of the Japanese-made anti-ship missile, which then made the said ship sink into the depths of the sea off the coast of Western Luzon.

This resulted for the Armed Forces of the Philippines to express interest on the Japanese-made anti-ship missile system and other systems in Balikatan 2026, all of it will help improve the capabilities of the country’s defense capabilities, coming alongside the interoperability between nations that took part on the Joint Exercise as intertwining military hardware use helps multiply the needed deterrence that the country needs amidst the aggression imposed by the northwestern neighbor in the West Philippine Sea.

It also gives Japan the consideration of exporting the Type 88 anti-ship missile platform to the Philippines, after its outstanding success in sinking the BRP Quezon during the Joint Exercise Balikatan 2026. This development gives the increasing prospect that the Armed Forces of the Philippines might get this anti-ship missile platform aside from the reported transfer of the Abukuma-class Destroyer Escorts to the Philippine Navy, both of which will boost the country’s maritime defense prospects.

THE MISSILE DEVELOPMENT

The Type 80 anti-ship missile munition, originally designed as an aircraft-launched warhead, became the basis for the development of the truck-based Type 88 surface to ship missile.
From Wikimedia Commons.

In the 1980s, at the time that the Abukuma-class destroyer escorts were being built for the Japan Maritime Self-Defense Force, Mitsubishi Heavy Industries or MHI developed the Type 88 anti-ship missiles, which itself is a land-based version of the air-launched Type 80 (ASM-1) anti-ship missile. 

Mounted onboard trucks like the ones Japan deployed during the Joint Exercise Balikatan, its excellent performance still reflects relevance even for a late 1980s-era missile technology incorporated at its time.

This likely come as Japan’s attempt at creating and expanding its indigenous missile production, whereby a ship-based variant of the Type 88 also got developed during the period, intended for integration onboard the warships belonging to Japan Maritime Self-Defense Force or JMSDF, such as the Murasame-class destroyers and Akizuki-class destroyers, which is the Type 90 anti-ship missile. For context, the Abukuma-class destroyer escorts originally came with Harpoon anti-ship missiles installed.

Since its development in the 1980s, the Type 88 and the multitude of anti-ship missile iterations that Japan developed became the backbone of the Japan Self-Defense Forces’ missile capability, coupled with its domestic industry which primarily focuses more on developing and producing military technology that is only limited for its own use, as the government’s pacifist policy prevented any transfer or sale of military hardware, until just recently with the relaxation of restrictions imposed to this prospect.

The Philippine Armed Forces’ interest in the Type 88 surface to ship missile platform presents an opportunity, taking a deep understanding regarding its capabilities by examining its specifications as presented in this detailed entry here. At a glance, the Type 88 missile, as a truck-launched based platform, comes with a mass of 661 kilograms, a length of 5.08 meters, a diameter of 350 millimeters, and a warhead weighing at around 225 kilograms of high explosive round that has the capability of sinking a ship.

Going on its trajectory performance, the Type 88 missile gets propelled by a Mitsubishi TMJ2 turbojet engine and a single solid rocket booster as it gets launched from its truck launcher, giving out an operational range of around 180 kilometers and a low, skimming flight altitude of just 5-6 meters. 

Going further, it has a maximum speed of 1,150 kilometers per hour, which is almost reaching the speed of Mach 1 (1,238 kilometers), and has an onboard inertial guidance and terminal active radar homing system.

In comparison, the SSM-700K ‘Haeseong’ C-Star anti–ship missile that the Philippine Navy employs onboard both the Jose Rizal-class and Miguel Malvar-class of guided missile frigates comes with a warhead weighing at around 250 kilograms, while the entire missile’s mass comes at around 718 kilograms, which is heavier compared to the Japanese Type 88 missile. The C-Star’s size is 5.46 meters and a diameter of 340 millimeters, which makes it longer than the said Japanese-made missile.

With the speeds coming at 1,010 kilometers per hour and operational range of around 150 to 320 kilometers, the C-Star missile as Philippine Navy’s ship-based weaponry comes hand-in-hand with the coastal-based anti-ship missile features brought by the Type 88 surface to ship missile system from Japan as part of the broader push for a sufficient anti-access area denial (A2/AD) layer in areas of concern like in the northern and western parts of mainland Luzon.

TYPE 88 SUCCESSOR IN JSDF SERVICE

Japan Ground Self-Defense Force's Type 12 surface-to-ship missile.
Image Source.

Interest in the Type 88 surface to ship missile platform by the Armed Forces of the Philippines and its successful firing during the Joint Exercise Balikatan 2026 comes alongside the ongoing capability upgrades that are taking place within the Japan Self-Defense Force, one that served as an impetus to this development relative to the purported sale of the 1980s-era missile munitions to the Philippines. This refers to the development and deployment of their Type 25 surface to ship missile.

Being a hypersonic missile in itself, the Type 25 surface to ship missile serves as a continuous missile development path that the Japan Ground Self-Defense Force undertake for its truck-launched platform, and the third succeeding missile type that followed both the Type 88 and Type 12 surface to missile platform. Being an upgrade over the Type 12 surface to missile platform, the Type 25 surface to ship missile has the capability of destroying targets well within its 1,000-kilometer range.

Before the Type 25 surface to ship missile’s introduction into the Japan Ground Self-Defense Force’s array of missiles capable of striking naval targets that threaten the Japanese home islands, they maintain the Type 12 surface to ship missiles which count as a successor to the older Type 88 missiles, with the latter likely getting phased out from the Japanese military stocks and, if pushed through, will help improve the capabilities of the Philippine Armed Forces alongside its BrahMos and C-Star anti-ship missiles.

In terms of capabilities, the Type 25 surface-to-ship missile exhibits a leap in technological advantages, especially when compared to the Type 88 surface-to-ship missiles that originally came from the late 1980s. Aside from its reported range of around 1,000 kilometers, the Type 25 actually has at least two (2) variants, one of which being an upgraded variant of the legacy Type 12 SSM, while the other being the hyper velocity gliding projectiles (HGVP) missile variant.

Completing the link between the Type 25 surface to ship missile to the Type 88 that the Armed Forces of the Philippines might likely get in this case, is the Type 12 surface to ship missile, where procurement of the said missile took place in 2012, and its deployment happened two (2) years later, in 2014. 

Like the Type 88, this missile is also a development made by Mitsubishi Heavy Industries for Japan Ground Self-Defense Force requirements, emphasizing the capability evolution exhibited by Japanese technology for its defense.

Going through its technical specifications, the Type 12 surface to ship missile’s size comes with its 350mm diameter width, 5 meters length, overall weight of around 700 kilograms, range of 200 kilometers, and a maximum speed of 1,111 kilometers per hour. 

It kept ‌most of its size as compared to the Type 88 surface to ship missile, along with the overall projectile speed of the newer version of the missile, although the Type 12 is heavier compared to the 661-kilogram mass of the Type 88. 

What technically differentiates the Type 12 surface to ship missile compared to its older Type 88 predecessor is the onboard systems configuration, whereby the former comes with an advanced guidance system that will provide enhanced precision against its intended target. Specifically, it comes with a guided launcher, fire control device, relay device, and GPS-based updated guidance system.

THE EXPORT PROSPECT

The Philippine Navy will receive the Abukuma-class destroyer escorts as part of the deal between the Philippine and Japanese governments.
From Wikimedia Commons, shared through an article source.

The Philippine Armed Forces’ desire to secure Type 88 surface to ship missiles from Japan and the Japanese’ interest in providing them to the Philippines goes beyond the technical specifications and the firepower-building capabilities of the Philippine Armed Forces as part of its own ongoing modernization push, whereby it presented a multitude of firsts for both sides relative to this development, along with the set of agreements and policies from the governments of the said countries that have made this possible.

For both Japan and the Philippines, the exporting of the Type 88 surface to ship missiles comes with multiple milestones that have come with this move - for one, the Philippines might likely be the first overseas user and the other one aside from Japan that operates and maintains the said Japanese-made missile technology from the 1980s shall this export pushes through. This also entails the first export for the Japanese relating to missile technology since its lifting of arms export restrictions in April.

Speaking of the lifting of arms export restrictions made by Japan, this actually refers to the revisions made to the country’s three principles on equipment transfers and their implementation guidelines, which serves as the primary policy paper of the Japanese government that justify its need of transferring and sale export of its military hardware, of which it now includes the same intended for lethal military hardware, which were previously prohibited before the approved revisions.

For the Philippine Armed Forces, this will mean having three (3) types of anti-ship missiles in active service, alongside the Indian-made BrahMos missiles and the South Korean-made SSM-700K Haeseong ‘C-Star’ Missile, and the second (2nd) coastal, ground-based missile launching solution, alongside the aforementioned Indian-made missiles. The export of Japanese-made missiles helps expand the coastal defense capabilities of the Philippines and its deterrence on a broader scale.

In this purported export of the Type 88 surface to ship missiles from Japan to the Philippines, this also paves the way for both countries to take any future export of newer missile variants that Japan currently has in service, most notably both the Type 12 and the recently introduced Type 25 missiles that will probably replace the old, 1980s-era missile system that became the primary premise of the exports. This is important as the Philippine military also looks at other options like the NSM-armed NMESIS system.

Aside from the Type 88 surface to ship missiles, the Armed Forces of the Philippines also has the interest in the Abukuma-class Destroyer Escorts, of which recent reports from a Japanese outlet suggest that the Philippine Navy will probably get at least five (5) out of six (6) destroyer escorts as part of its fleet expansion planning, going alongside ongoing purchase of both the Rajah Sulayman-class Offshore Patrol Vessels and the repeat order of Miguel Malvar-class guided missile frigates.

All the mentioned export prospects relative to the Type 88 missile, destroyer escort transfer to the Philippine Navy, and the upgrading of Philippine-Japanese defense ties into a full Comprehensive Strategic Partnership, gives added support to the foundation of not only reinforcing the resolve of both countries as an important component of the first island chain, but also increasing of support for the country’s defense supply chains, joining the likes of South Korea in providing defense material support to the Philippines.

LOOKING FORWARD

The decommissioned BRP Quezon after being hit by a Type 88 missile during the Sinking Exercise (SINKEX) phase of the Joint Exercise Balikatan 2026.

As the bilateral defense relations between the Philippines and Japan improve, along with the multitude of factors that refers to the relaxation of arms exports and the Type 25 missile’s first deployment within the Japan Ground Self-Defense Force or JGSDF, makes the export of Type 88 surface to ship missiles an ideal one for the Armed Forces of the Philippines to consider, with both the Philippine Army and the Philippine Marine Corps being the primary beneficiary of this development if it pushes through.

The capabilities of the said 1980s-era developed Japanese-made missile showcased during the first mainstream involvement of the Japan Self-Defense Force in the 2026 Joint Exercise Balikatan, whereby it successfully targeted the decommissioned World War 2 era corvette, a success that caught the attention of the Philippine military leadership where its capabilities, if bought, transferred, and secured in numbers, adds strength to the anti-access/area denial (A2/AD) strategy of the country.

Currently, at the time this article gets published, the purported export of Type 88 surface to ship missiles to the Philippines from existing Japanese Self-Defense Force stocks is still at the talking level, although the assessment comes is once the deal pushes through, its delivery will come with phases, parallel to the entry of additional Type 25 missile launchers and munitions in the Japanese military service - a process that will take years until the entire transition gets completed.

Even with the plans for Type 88 surface to ship missiles for the Philippines made rounds in the country’s multiple defense communities and spaces, this might likely not stop the Armed Forces of the Philippines into seeking other anti-ship missiles available in the market, aside from an ensured supply chain associated with the most likely repeat orders of both the BrahMos and SSM-700K ‘Haeseong’ C-Star missile, both are already serving in the Philippine Navy’s weaponry arsenal.

As the planned export of Type 88 surface to ship missiles from Japan to the Philippines is still at the discussion level, that are likely to come as part of the improving defense ties between both countries as part of the newly forged Comprehensive Strategic Partnership cemented by the approved Reciprocal Access Agreement ratified by both governments, its overall direction might still change, especially in whether the entire plan pushes through, in the numbers involved, and in the process of transferring the said materials.

Still, the entire discussion presented for this type of missile system that might get introduced in the Armed Forces of the Philippines gives a promising prospect, a positive note even, that there is an opportunity open for the military leadership to further improve the expanded capabilities of all the service branches of the organization, even in the note that the procurement plans and programs of the Revised AFP Modernization Program is still actively ongoing and in process.

Ultimately, this development is something worth looking forward to, especially with the firepower benefits it presents for the Philippine military to get its hands on as it continuously expands its territorial defense deterrence under the Comprehensive Archipelagic Defense Concept or CADC umbrella. Admittedly, the Armed Forces of the Philippines have achieved so far for its territorial defense, with the Type 88 surface to ship missiles will help add to that achievement even further.

(c) 2026 PDA.

Published from a station in Eastern Visayas. 

Share:

Read More

Philippine Defense Budget in 2026 as Explained

The Philippine government enacted the 2026 General Appropriations Act, which includes portions of the country's defense budget for the said year. As always, the figures presented for the defense budget in this calendar year as compared to previous years will come as a presentation of the current trends that also correlate to the urgency of the country's overall policy for its national security, especially with the challenges that external forces pose against the territorial integrity of the Filipino Nation.

OVERVIEW

The 2026 General Appropriations Act funds all projects of the government for the said year.
That includes the ones under the Revised AFP Modernization Program.

On January 5, 2026, President Ferdinand R. Marcos Jr.‌ signed Republic Act 12314, more commonly known by many as the 2026 General Appropriations Act, into law. This enacted law, at a glance, defines the allotments provided by the national government through the recommendations set by the Development Budget Coordination Committee (DBCC) after collating the plans and programs presented by various agencies, which then undertook budget deliberations at the legislative level before it got the presidential signature.

Amounting to Php 6.793 trillion, the law provides authorization to all government agencies and instrumentalities to use the budget according to their set plans and programs as defined by their various annual procurement plans or APP, as governed by respective procurement, accounting, and auditing rules and regulations set at the time this article got published, especially the recently enacted Republic Act 12009 or the New Government Procurement Act (NGPA).

As the law now takes its course as being under implementation all throughout the year 2026 plus the subsequent continuing appropriations validity of the 2026 General Appropriations Act extended to the year 2027 in terms of obligations for MOOE and Capital Outlay, giving an in-depth look on the allotments provided to the Department of National Defense, including those under the Revised AFP Modernization Program, provides a picture that entails changes and developments on the presented figures.

Of course, the defense budget deliberations also came with scrutiny, especially with calls within the halls of the legislative bodies relating to un-programmed appropriations, along with the calls of the Department of National Defense on provisions regarding to the flexible financing options that might enable them to undertake contracts and other deals that entail the expansion of the capabilities provided to the Armed Forces of the Philippines as aligned to the Republic Act 10349 or the Revised AFP Modernization Law.

For this topic, the discussion will not only cover the figures relating to the allotments provided to the Defense Department for the fiscal period of 2026, but also to cover other matters relating to the defense budget during the deliberation, the calls for minimizing the need of including un-programmed appropriations in the written legislature, and the hurdles entailing an old presidential decree which undermines a special provision in the law relating to the Revised AFP Modernization Program.

THE BREAKDOWN UNDER DND REGULAR APPROPRIATIONS

Here is the programmed budget intended for National Defense under the 2026 General Appropriations Act.
From Republic Act 12314.

In the provided figures above, referencing the 2026 General Appropriations Act encompassing the entire budgetary allotments that the Department of National Defense have for the said fiscal period, the total amount provided for the said department for the said year amounts to the total of Php 305.872 billion, of which Php 292.483 billion of the budget are intended to the financial requirements of the entire Armed Forces of the Philippines under this regular fund.

Going into the specifics, the Philippine Army received the largest portion of the budgetary pie of the Armed Forces of the Philippines, with a total allotment of Php 145.161 billion, followed by the Philippine Air Force with a total budgetary allotment of Php 60.634 billion. 

The Philippine Navy received the smallest allotment among the three (3) major branches of the Philippine Armed Forces, with a budgetary allotment of Php 59.929 billion, and completing the amount is GHQ-AFP with Php 26.758 billion.

Other than the Armed Forces of the Philippines, the remaining budgetary allotments of the Department of National Defense go to other agencies attached to the department, including the Office of the Secretary itself. 

That includes self-reliance defense posture efforts of the ‌Government Arsenal (GA), disaster and calamity response units belonging to the Office of Civil Defense (OCD), military support institutions for career enhancement (NDCP), and veterans-related support.

As compared to the allotments provided by the Department of Budget and Management (DBM) to the Department of National Defense in 2025 for the Armed Forces of the Philippines, there is a significant increase in allotment for the country’s military in 2026, in which the variance in comparison amounts to around Php 32,245,003,000.00, up from 2025’s Php 260.238 billion in allotment. Each of the major branches received an increase in its allotment, encompassing its entire Personnel Services, MOOE, and Capital Outlay expenditure items.

In the breakdown, each of the major service branches of the Armed Forces of the Philippines, including the General Headquarters, received an increase in allotment for 2026 that comes with the following amounts: Php 6,933,151,000.00 for the Philippine Army, Php 9,060,027,000.00 for the Philippine Air Force, Php 8,894,742,000.00 for the Philippine Navy, and Php 7,357,083,000.00 for the General Headquarters, AFP and AFP-Wide Service Support Units, totalling to the said Php 32.245 billion increase.

As always, the large portion of the budget of the major branches of the Philippine Armed Forces goes to the Personnel Services of its officers and troops, specifically for the salaries and benefits of its currently active personnel plus retirement benefits for those who already reached their mandatory age of exiting from active duty. 

The second largest allotment, as presented on the graph, goes to the maintenance and upkeep of both military hardware and facilities, and the remaining amount goes to their capital outlay projects.

In totality, the Armed Forces of the Philippines saw a significant increase on its allotments, sufficiently aligning to the ongoing sustainment of its personnel and operational requirements, along with its continuous effort of upgrading its facilities, buying capital outlay items that are not part of the Revised AFP Modernization Program, and its transformation to a more capable force aligned with its current posture pointing for external defense deterrence.

REVISED AFP MODERNIZATION PROGRAM

The amount set by the 2026 General Appropriations Act for the Revised AFP Modernization Program comes at around Php 40 billion.

For fiscal year 2026, the budget allotted for the Revised AFP Modernization Program under the General Appropriations Act of the said year is ‌around Php 40,000,000,000.00 - an increase compared to the 2025 allotment of Php 35,000,000,000.00 and similar to the allotment provided by the Department of Budget and Management (DBM) for this specific budgetary expenditure item for the year 2024. 

This clearly emphasizes the consistency provided in the amount allotted by ‌Congress for this program.

It is also at this consistency of the provided allotments for the Revised AFP Modernization Program that the Armed Forces of the Philippines found constrained into providing its multi-billion acquisition projects spanning all the three (3) major service branches of the organization, some of which are way beyond the fiscal space provided by the DBM such as the multi-role fighter jet package proposals pushed by the Department of National Defense for the Philippine Air Force.

While the amount provided increases by Php 5,000,000,000.00 compared to the figures provided under the 2025 General Appropriations Act, the overall allotment provided for the year 2026 still comes insufficient from this point of view, especially that there are still projects funded under multi-year arrangements that will probably use the funding under this allotment for the projects to push through. This gives the DND budget planners minimal fiscal space to move and select key programs under this arrangement.

For context, several projects pushed by the Department of National Defense based on their Procurement Monitoring Report encompassing the 2nd semester of year 2026 includes the Frigate Acquisition Project - Full Complement (which calls for the purchase of two (2) additional Miguel Malvar-class frigate/HDF-3200 variant), six (6) anti-submarine warfare helicopters (likely the Leonardo AW-159 Wildcat), additional 155mm Self-Propelled Howitzer of the Philippine Army, among others.

While the allotment for the Revised AFP Modernization Program under the 2026 General Appropriations Act remains constant, the overall budget for this object of expenditure actually increased significantly, especially when factoring in the next part of this discussion, this time encompassing the one categorized under Un-programmed Appropriations, itself faced with controversy at the period when the overall budget itself faced full scrutiny at the light of budget-related issues riddled in the year 2025.

UNPROGRAMMED APPROPRIATIONS

Most of the items under the Un-programmed Appropriations got slashed out as the result of the Presidential Veto, leaving the Revised AFP Modernization Program and Support to Foreign-Assisted Projects.

As complementary to the allotments provided for the Revised AFP Modernization Program, the 2026 General Appropriations Act also provided some additional fiscal space for the said item of expenditure through this important yet equally controversial feature of the enacted law - the Un-Programmed Appropriations allotment. 

As discussed previously on various topics on the defense budget, this provision can go into effect if any of the conditions provided for the un-programmed appropriations takes place.

For the Revised AFP Modernization Program, such allotment equates to around Php 50 billion, totalling the allotment that gets set aside for this program under the 2026 General Appropriations Act to around Php 90 billion - the highest allotment there is to-date since the time this article gets published. 

For context, the 2025 General Appropriations Act set aside around Php 75 billion for this expenditure item, while the 2024 General Appropriations Act only set aside Php 50 billion.

This is also the highest one provided under the Un-Programmed Appropriations allotment intended for the Revised AFP Modernization Program to-date, as it is higher by Php 10 billion compared to the 2025 General Appropriations Act’s Php 40 billion, and even higher further than the 2024 General Appropriations Act’s Php 10 billion. 

The increase gives emphasis that while the national government provides the needed budget for the item, its dependency on the government’s revenue performance does not give it full guarantee.

The uncertainty that this provision gives means a lot for any earmarked acquisition projects that the Department of National Defense has in line under the Revised AFP Modernization, aside from the other flexible financing scheme that is also highlighted on the special provisions of its budgetary use as it gets discussed separately on this article writeup. Any ‌progress aligned with the budget allotted under this current year's enactment is likely reflected in the semestral release of the DND’s procurement report.

Enacting the General Appropriations Act for 2026, especially the un-programmed appropriations act, doesn't always come smoothly, as the very core definition of this provision always comes riddled with its own sets of controversy. 

At one point, concerned groups highlighted the constitutionality of simply having the concept of un-programmed appropriations in the enacted law, further implying that any agency plans under these appropriations will fail if there is no available funding to cover them.

At the time this article is written, there is an ongoing deliberation of oral arguments relating to the constitutionality concerns of the un-programmed appropriations before the Supreme Court, as its critics highlight of its concerned legality that might affect the Php 50 billion allotments of the Revised AFP Modernization Program especially if there is a basis that there is a problem on its legality. The question on its decision, however, will probably happen at a time that is beyond what is now provided in this writeup.

While the question on un-programmed appropriations, where the large pie of the Revised AFP Modernization Program allotment, makes it uneasy on the overall implementation of key Acquisition Projects earmarked using this fund which might likely include the most sophisticated weaponry that either of the three major service branches of the organization aims to get, the next point of this discussion will cover another aspect of this topic - which on the special provisions relating various financing schemes.

SPECIAL PROVISIONS FOR THE REVISED AFP MODERNIZATION PROGRAM

The provided special provisions highlighted the use of Foreign and Domestic Financing Requirements to fund big ticket acquisition projects under the Revised AFP Modernization Program.

In an itemized budget release, such as with the Revised AFP Modernization Program, it always comes with a special provision that is primarily intended for‌ guidance on how the budget will be released by the Department of Budget and Management to fund the modernization-related requirements of the Armed Forces of the Philippines earmarked in this object of expenditure, along with the reporting and posting requirements intended for accounting and auditing reasons as expected on a public office.

While the special provisions on both the release and reporting come as a regular case for the Revised AFP Modernization Program allotment item, this writeup in 2026 now includes something that might, as what several lawmakers pushed, help the planners within the Department of National Defense and the Armed Forces of the Philippines, in their desire to secure far more sophisticated military weaponry and the expensive price tag that it comes with, especially when it is an entire force package.

This said special provision mentioned here refers to the ‘Foreign and Domestic Financing Arrangements’, which itself comes as a complementary mechanism to the allotments set aside for the Revised AFP Modernization Program, as the annual allotments provided by the national government are likely insufficient to other big ticket projects that are beyond the allotments provided on the enacted laws. One key example of a project that might require this arrangement is on a package involving multi-role fighter jets.

Detailing the arrangement as written in the special provisions of the law governing the Revised AFP Modernization Program under the 2026 General Appropriations Act, it says that the Secretary of Finance has the authority to negotiate, contract, and undertake into foreign and domestic financing schemes and arrangements, with consultation provided from the Department of National Defense, which then will undertake the approval directly from the President, with limitations as provided by law.

The ‘limitations as provided’ itself is one big stumbling block in attaining multiple large acquisition projects that go beyond what’s allowed in the budget, as there is another law written way back in the 1970s that explicitly limits the amount needed for the national government to secure a loan or any other credit and financing mechanisms in place. This specific law directly refers to Presidential Decree No. 415, which gives authority to the Secretary of National Defense to undertake defense contracts primarily focused on SRDP.

The provision on the Presidential Decree No. 415 that presents as a stumbling block into attaining better financing schemes lie on Section 3 of the said decree, whereby the President of the Philippines has the power to contract various financing mechanisms not limited to loans and credit lines, of which it should not exceed the amount of around Three Hundred Million United States dollars (US$300 million), of which only equates to Php 18.135 billion as per April 23, 2026 exchange rate.

That limitation, which is even lesser than the budget provided to the Revised AFP Modernization Program under the current and the two previous enacted General Appropriations Act, means that the Armed Forces of the Philippines will probably be stuck into getting the more ‘cost effective’ option in improving its capabilities. This means limiting into securing additional FA-50PH lead-in fighter trainer jets, Sabrah light tanks or their equivalent, and Miguel Malvar-class guided missile frigates.

ENDING NOTE

Infrastructure support is as important as the military hardware purchased.
Image from the 5th Fighter Wing, Philippine Air Force.

The Philippine defense budget for the year 2026 is indeed higher compared to the previous years that the national government set aside for key big ticket acquisition projects needed for the Armed Forces of the Philippines’ various service branches, although the actual requirements provided in each horizon of the Revised AFP Modernization Program are still not met given that the allotments available is still not sufficient for this endeavor.

This comes as the un-programmed appropriations of the Philippine defense budget under the 2026 General Appropriations Act for the Revised AFP Modernization Program come higher than the one allotted for the programmed appropriations, with the former having more than half of the allotments intended for the purchase of intended big-ticket, military hardware-oriented projects that each of the service branches have in mind, in line with the Horizon 3 phase and the previous Horizon 1 and 2 lineups.

Added to this is the provision that welcomes soft loans and similar-crafted financing schemes related to credit lines and flexible payment arrangements, although this still needs adhering to the provisions stipulated in the Presidential Decree No. 415, especially in the ceiling it provides for the Secretary of National Defense in authorizing as to the extent of the amount allowable for multiple acquisition projects to push through. This put key projects with comprehensive packages like the multirole fighter jets in a dilemma.

Aside from the key problems presented on both the budgetary allotment and the financing schemes, one another area not discussed on is on the investment needed for the supporting infrastructure that allows the Philippine Armed Forces to accommodate and properly maintain its expensive military hardware, let alone expand the welfare of its personnel as part of a necessary policy direction governed by a proper process as specified using the DOTMLPF-P analysis.

Ultimately, the 2026 Philippine defense budget presents two different yet justifiable perspectives relative to the overall efforts needed to push for a professional and highly capable Philippine Armed Forces. 

On one hand, they received the largest share for their modernization efforts compared to the previous year's figures, while on the other hand, it presents that the budget, while commendable, is still insufficient. 

Ultimately, it is a clear indicator that investing to ensure this country’s freedom always comes at a cost.

To access the documents, here are the following links below.

1. GAA 2026 - Department of National Defense Budget, under Volume I-A, Chapter XXI (archived).

2. GAA 2026  Revised AFP Modernization Program Budget, under Volume I-B, Chapter XLII (archived).

3. GAA 2026 Un-programmed Appropriations, under Volume I-B, Chapter XLIII (archived).

(c) 2026 PDA.

Published from a station in Eastern Visayas. 

Share:

Read More