Defense Secretary Outlines P126.9 Billion Budget Need for AFP Modernization in 2027

The Department of National Defense (DND) revealed a funding gap of P76.97 billion for the Armed Forces of the Philippines (AFP) modernization program in 2027 during a House Committee on Appropriations hearing.

Defense Secretary Gilberto Teodoro Jr. presented the proposed budget showing an allocation of P50 billion under the National Expenditure Program (NEP) for the next fiscal year, leaving total modernization needs at P126.97 billion.

The total funding requirement includes P17.28 billion for ongoing Horizon 2 and Horizon 3 projects with Multi-Year Contracts (MYCAs), P18.64 billion for new MYCAs to be contracted in 2026, P21.26 billion for existing contracts due by 2026 including carryovers, and P69.78 billion for priority new acquisitions planned for 2027.

Teodoro highlighted challenges posed by the rapidly evolving technology and emerging threats that have required revisions to the AFP’s long-term 15-year modernization framework.

"As a result of the budgeting and the modernization process, we are still in Horizon 2 projects. A lot of Horizon 2 projects we had to cancel already for being obsolete. And we've had to revise Horizon 3 several times to reflect new threats and new developments," Teodoro said.

The defense chief advocated for a modernization approach that is more adaptive, flexible, and agile to better meet these dynamic challenges.