Lower Confidential Intelligence Funds in 2026 Budget
The proposed 2026 budget reveals a strategic reduction in confidential intelligence funds, signaling a tighter allocation for national security expenses. Budget managers are focusing on channeling these funds strictly to authorized agencies, ensuring better oversight and transparency.
Budget Secretary Amenah Pangandaman disclosed that the Department of Budget and Management (DBM) has proposed a total of P10.7 billion for confidential and intelligence funds (CIF) in the 2026 National Expenditure Program (NEP). This figure marks an 11 percent decrease from last year’s P12.1 billion allocation, reflecting more prudent fiscal management, officials reported.
Understanding the Role of Confidential Intelligence Funds
The NEP forms the foundation of the General Appropriations Bill (GAB), which President Ferdinand Marcos Jr. is expected to sign into law later this year. The CIF is a critical component of the budget, reserved for sensitive national security and intelligence operations that require discretion.
A detailed breakdown of the proposed 2026 CIF indicates that the Office of the President will receive the largest share of P4.5 billion. This amount significantly surpasses the allocation for the National Intelligence Coordinating Agency (NICA), which will be allotted P1.1 billion. Meanwhile, the Department of National Defense is set to receive P1.8 billion for its confidential funds, according to DBM sources.
Distribution Among Key Security Agencies
Other executive bodies, including the Anti-Money Laundering Council, National Security Council, and the Philippine National Police, will collectively share P2.2 billion in CIF allocations. This distribution emphasizes the government’s commitment to concentrating CIF within agencies with clear mandates on national security and law enforcement.
House Prioritizes Strict CIF Allocation
House Committee on Appropriations Chairperson, Nueva Ecija Rep. Mikaela Suansing, emphasized that the 2026 budget prioritizes directing confidential funds exclusively to agencies authorized to handle them. She stated, “Our priority is to ensure that secret funds go only to agencies allowed to have CIF.” This approach aims to curb misuse and enhance accountability.
Concerns Over Transparency and Past Misuse
Civil society groups and watchdogs have long criticized the opaque nature of CIF, which are lump-sum funds exempt from standard auditing to protect sensitive operations. However, this exemption can create vulnerabilities to abuse.
Recent controversies have highlighted these risks. Allegations surfaced that Vice President Sara Duterte misused over P612.5 million in confidential funds allocated to the Office of the Vice President and the Department of Education—two agencies that traditionally do not receive CIF. Community members noted that these funds were reportedly disbursed to ghost beneficiaries with fictitious names such as “Mary Grace Piattos,” “Marian Rivera,” and “Chel Diokno.”
Political Fallout and Legal Proceedings
A House committee on good government conducted an inquiry during the 19th Congress, uncovering these irregularities. These findings formed the basis of impeachment articles endorsed by 215 lawmakers against the Vice President in February. Nevertheless, the Supreme Court dismissed the case in July, citing a violation of the one-year bar rule, sources said.
As the government moves forward with the 2026 budget, the reduced confidential intelligence funds and targeted allocations aim to strengthen fiscal discipline and restore public trust in the management of sensitive funds.
For more news and updates on proposed 2026 budget, visit Filipinokami.com.
