Related Timawa.net discussion: http://www.timawa.net/forum/index.php?topic=8421.msg281544#msg281544
Based on available data on the Department of Budget and Management Website, Philippine defense spending is at an all time high. The following graph presents the DND budget from 2005 (the oldest record available at the DBM site) to 2011.
The DND allocation increased by 81% for 2011. Interestingly, this does not even reflect that additional funding that is drawn from General Fund 151 (Malampaya). The department is no longer limited to its share of the General Appropriations Act.
While the recent increase in defense spending is cause for encouragement, the Philippines has been under spending on its defense for so long, it will take several years, if not several administrations, worth of improved spending to realize true military modernization.
The following graph presents World Bank data on Philippine defense spending, as percentage of GNP from 1990 to 2010.