DND Orders Shift to Advanced Weapons, Wider Military Presence Amid Budget Gap
MANILA – The Department of National Defense (DND) is preparing to move government weapons production toward advanced munitions and expand the military's presence in strategically important areas across the country, as it faces emerging security threats and gaps in territorial defense.
Defense Secretary Gilberto Teodoro Jr. shared the plans on Monday, October 19, 2026, during the Senate hearing on the DND's proposed 2027 budget. He said the Government Arsenal has been directed to go beyond its traditional role as a producer of small-arms ammunition and build capabilities for more sophisticated weapons systems.
"For so long, the government arsenal has not operated as an arsenal, but as a factory," Teodoro told the Senate Committee on Finance.
Arsenal Upgrade
Teodoro said the agency must focus on higher-technology munitions, including indirect-fire weapons, while pursuing technology transfers through government-to-government arrangements with trusted defense partners. These arrangements, he explained, would let the Philippines develop sensitive defense capabilities through cooperation involving confidential technologies and weapons platforms.
The planned transformation is part of the DND's broader effort to strengthen domestic defense capabilities as conflicts abroad increase competition for military equipment and critical components.
Teodoro said the Government Arsenal reached only 63 percent of its production target last year because of shortages of propellants and other essential materials in the international market. He described the global defense industry as a seller's market, where competing buyers could offer suppliers more attractive terms despite existing contracts.
Expanding Military Presence
Beyond weapons production, Teodoro said the Armed Forces of the Philippines (AFP) must address gaps in its deployment across the country's more than 7,600 islands.
The Philippine Army has been directed to identify locations for additional military formations and strategic bases, particularly in areas where the AFP lacks sufficient operational and logistical presence. It has also been told to assess areas requiring additional brigades, divisions and logistical facilities to support a more sustainable military presence. The proposed locations would also serve as hubs for critical infrastructure and strategic military operations.
Teodoro cited Mindoro, where the Army maintains only one brigade, and Northern Luzon, where one division covers several provinces. He also identified the eastern seaboard as an area requiring substantial investment because of limited naval infrastructure and operational presence.
Meanwhile, the Philippine Marine Corps has been tasked to examine its organizational growth and equipment requirements to improve its mobility, deployability and firepower.
Teodoro stressed that the military's ability to respond to external threats depends not only on acquiring weapons but also on establishing the facilities, personnel and logistical networks necessary to sustain operations. He noted that some existing roads and bridges cannot accommodate the weight of military platforms, limiting the movement of equipment between bases. The department is therefore prioritizing strategic hubs, durable access infrastructure and government-controlled supplies of fuel, ammunition and other essential materials.
Funding Shortfalls
The proposed expansion and modernization come as the DND faces substantial differences between its original 2027 funding requirements and the allocations in the National Expenditure Program (NEP).
According to the department's budget presentation, its proposed regular funding of PHP572.79 billion was reduced to PHP324.63 billion in the NEP, a difference of PHP248.15 billion or 43.32 percent.
The AFP's proposed regular allocation of PHP550.89 billion was reduced to PHP312.78 billion, a 43.22-percent shortfall against its request.
Philippine Army: requested PHP193.23 billion, but received PHP146.87 billion in the NEP
Philippine Navy: proposed PHP101.93 billion, reduced to PHP70.47 billion
Philippine Air Force: request of PHP86.95 billion cut to PHP65.29 billion
The largest percentage reduction among major AFP components was recorded under General Headquarters and AFP-wide support services, whose PHP168.77-billion proposal was reduced to PHP30.14 billion, or 82.14 percent below the requested amount.
Teodoro warned that inadequate funding for area commands and strategic capabilities could force the AFP to concentrate resources in the most threatened locations, potentially creating operational gaps elsewhere.
The Government Arsenal, which is expected to spearhead the shift toward advanced munitions, received a proposed PHP2.24 billion against its PHP2.52-billion request.
The DND also sought PHP133.97 billion for AFP modernization under the special purpose fund, but only PHP50 billion was included in the NEP, representing a 62.68-percent reduction from its proposal.
Despite these gaps, the department's PHP324.63-billion regular allocation represents a 10.31-percent increase over its comparable 2026 budget.
Teodoro emphasized that the military must build sustainable capabilities rather than rely solely on equipment purchases, particularly as geopolitical tensions and technological changes reshape defense requirements.
Senate President Sherwin Gatchalian likewise underscored the importance of sustained AFP modernization, including preparations for cyber warfare and emerging security threats.
Quick Summary
What: DND orders shift to advanced weapons production and expansion of military presence, amid funding shortfalls in the proposed 2027 budget
Where: Senate, Philippines
When: Monday, October 19, 2026
Impact on the Philippines: Covers the Government Arsenal's shift to advanced munitions, AFP deployment across the country, and the proposed 2027 defense funding
Source: Philippine News Agency (PNA)