P6.352-trillion proposed 2025 budget to be submitted one week after SONA, says DBM

The Marcos administration’s economic team has set next year’s budget program at P6.352 trillion.

At a press briefing following the 188th Development Budget Coordination Committee (DBCC) meeting on Thursday, Budget Secretary Amenah Pangandaman announced that the proposed 2025 national budget is equivalent to 22% of the country’s gross domestic product (GDP).

Next year’s proposed spending program is also 10.1% higher than this year’s national budget of P5.768 trillion.

“We will present it to the Cabinet on July 2… and [submit it] to Congress on July 29, that’s one week after the SONA [State of the Nation Address],” Pangandaman said.

The P6.352-trillion proposed 2025 budget is also higher than the previously announced P6.2-trillion national expenditure plan in April.

The Budget chief explained that the upward adjustment in the proposed 2025 budget ceiling was due to higher national tax allocation “based on past two years of revenues… our economy is back so it grew.”

“There will be an election so we have to fund that. We also increased the allowance of those who will help the election,” Pangandaman said.

The government will also have to allocate bigger budget for the expansion of the Pantawid Pamilyang Pilipino Program or 4Ps.

“There’s also a recently signed law increasing teachers’ allowance from P5,000 to P10,000,” she said.

Pangandaman said the proposed 2025 national budget is anchored on the theme, “Agenda for Prosperity: Fulfilling the Needs and Aspirations of the Filipino People.” 

“With the overarching goal of the PDP (Philippine Development Plan) 2023 to 2028 to achieve economic and social transformation for a prosperous, inclusive, and resilient society, the proposed budget aims to develop and protect the capabilities of individuals and families; transform production sectors to generate more quality jobs and produce competitive products; and foster an enabling environment encompassing institutions, physical and natural environment,” the Budget chief said.

In evaluating the agencies’ budget proposals, she said the Budget Department considered several factors such as the availability of fiscal space, implementation-readiness of programs and projects, agency absorptive capacity, and alignment with expenditure directions. — BM, GMA Integrated News