The P6.362 trillion budget approved by President Ferdinand Marcos Jr. for 2025 will help the Philippines achieve the medium-term goals under the Philippine Development Plan (PDP) 2023-2028, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said Monday.
“The budget prioritizes strategic investments in social services with substantial allocations to education, health and social welfare programs and infrastructure projects to boost growth and inclusion. These investments are crucial for achieving the PDP’s targets related to human capital development and poverty reduction,” said Balisacan.
Balisacan and other economic managers lauded the president for the timely enactment of the General Appropriations Act for fiscal year 2025, avoiding the use of a reenacted budget that could delay essential government projects and programs.
The economic managers updated the medium-term growth targets to a wider band of 6 percent to 8 percent from 2025 to 2028.
“We would like to thank our President, President Ferdinand R. Marcos Jr., for personally being on top of reviewing the Bicameral Committee’s version of the budget. While the Congress’ version was quite different from the proposed budget that we submitted, we are grateful and relieved that the President has made sure that we do not end up with a reenacted budget,” Department of Budget and Management Secretary Amenah Pangandaman said.
She said the national budget places a strong emphasis on social services, including education and health, in accordance with the mandate of the Philippine Constitution. Economic services such as infrastructure and agriculture will also receive considerable focus, aiming to bolster the economy and combat the adversities brought by inflation and other calamities.
The 2025 budget is 9.7 percent higher than the previous year’s and equivalent to 22 percent of next year’s projected gross domestic product (GDP).
Finance Secretary Ralph Recto said of the total budget for 2025, only P4.64 trillion could be supported by revenues. This translates to daily government expenditures of P17.33 billion, with the Department of Finance bearing the responsibility of generating P12.72 billion in daily revenues.
He said the DOF would strive to not just meet but exceed its revenue targets to generate more resources—just as the country’s strong fiscal performance this year has demonstrated.
Total revenue collection for 2024 is expected to reach P4.42 trillion, surpassing the full-year target of P4.27 trillion. As a percentage of GDP, the emerging revenues will climb to 16.7 percent, the highest in the last 27 years, he said.
