Philippines sets 2025 national budget at P6.12 trillion

Philippine economic managers on Friday bared how much the government plans to spend in 2025.

In a statement, the Development Budget Coordination Committee (DBCC) said the proposed national budget for 2025 is set at P6.120 trillion, higher than the P5.768 trillion appropriations for 2024.

The 2025 national budget pitch is equivalent to 20.5% of the country’s gross domestic product (GDP).

The DBCC’s announcement on the national budget ceiling for 2025 came on the heels of President Ferdinand Marcos Jr.’s pronouncement that the proposed P5.768 trillion national budget bill would be signed into law before Christmas Day.

The economic team said the P6.120 trillion proposed 2025 national budget is “consistent with the macroeconomic assumptions and fiscal targets.”

The DBCC said the national government’s fiscal performance substantially improved in the first 10 months of the year with actual revenues rising to P3.22 trillion, up by 9.4% compared to the same period last year. 

This also exceeded the revenue target for the period by 5.2% given the better-than-expected collections by the Bureau of Customs (BOC) and income from the Bureau of the Treasury (BTr), among others. 

“Revenue is projected to reach P3.847 trillion by the end of the year and further rise to P6.622 trillion in 2028 due to the anticipated implementation of priority tax measures over the medium term. These measures aim to broaden the tax base, improve tax administration, enhance the fairness and efficiency of the tax system, and promote environmental sustainability to address climate change,” the DBCC said.

Meanwhile, the government’s spending performance accelerated as of the end of October, reaching P4.242 trillion, which is 4.5% higher compared to the same period last year. 

“This is a testament to the significant improvement in government spending in the previous quarter, driven by the agencies’ catch-up plans and the accelerated implementation of programs on infrastructure, social protection, education, livelihood, and employment, among others,” the DBCC said.

“As a result, disbursements for the year are projected to reach P5.340 trillion, an increase of 3.5% compared to last year. Infrastructure spending will also accelerate to P1.424 trillion, which is equivalent to 5.8% of GDP,” it added.

Over the medium term, the economic team said disbursements are expected to remain at an average of 20% of the GDP between 2024 to 2028. 

“Budget priority will continuously be given to programs and projects that ensure social and economic transformation, in line with the 8-Point Socioeconomic Agenda and the Philippine Development Plan (PDP) 2023-2028,” the DBCC said.

“We are also determined to maintain infrastructure at the center of our growth strategy with annual public spending on infrastructure set at 5% to 6% of GDP,” it added. —LDF, GMA Integrated News