Manila, Jan. 7 -- The 2026 General Appropriations Act (GAA) allows the government to borrow funds to modernize defense equipment, a policy shift aimed at accelerating upgrades while easing pressure on the national budget, a senator said Wednesday.

In an interview during Kapihan sa Manila Bay, Senate Committee on Finance Chairperson Sherwin Gatchalian said the new provision enables the government to tap concessional overseas development assistance (ODA) loans for major defense acquisitions instead of charging all big-ticket items to the national budget.

"During the budget hearing of the DOTr (Department of Transportation) under the Philippine Coast Guard (PCG), nakita ko na meron tayong overseas development assistance worth PHP4 billion ...