DOF’s proposed 2025 budget at P33.75 billion

The Department of Finance (DOF) and its attached agencies are seeking a total budget of P33.75 billion for fiscal year 2025. 

Finance Secretary Ralph Recto said the budget aims to support the agency’s core operations and priority programs, such as digitalization for efficient tax administration and public service. 

He said that the agency is tasked with funding the proposed P6.35 trillion 2025 national budget, of which only P4.64 trillion is supported by revenues.

“Thus for next year, our expenditures amount to P17.4 billion a day, of which P12.72 billion per day will be financed by revenue collections, and the rest, P4.68 billion, by loans. Every 24 hours. Ganito po kabigat ang kailangang gawin ng DOF kada bente-kwatro oras [This is how much the DOF needs to do every 24 hours] with our miniscule proposed budget of only P33.75 billion for next year,” he told the Senate finance committee.

Recto said that the DOF’s proposed 2025 is 20.8% higher than the 2024 General Appropriations Act (GAA) level but represents only 0.5% of the government’s total proposed 2025 national budget.

He added that their New General Appropriations constitute the most significant portion amounting to P29 billion to support the DOF’s core operations and priority programs, such as the digitalization to enhance revenue administration by the Bureau of Customs (BIR), customs enhancement by the Bureau of Customs (BOC), better financial asset and debt management by the Bureau of the Treasury (BTr), and improved local finance administration by the Bureau of Local Government Finance (BLGF).

Of the proposed budget, 41.4% is allocated to Personnel Services, 37.9% to Maintenance and Other Operating Expenses (MOOE), and 20.6% to Capital Outlays.

“Notably, the BIR will receive the largest share of the budget, totaling PHP 17.68 billion or 54.4% of the total DOF proposed budget,” the agency highlighted. 

In the first semester of 2024, Recto said DOF has already achieved an obligation rate of 70%, translating to PHP 40.85 billion in obligations from its total allotment of PHP 58.36 billion.

He also stated that the DOF ranks fourth among government agencies in terms of obligation rates, which is well above the entire government’s average obligation rate of 65.4%.

The agency ensured that the financial statements adhered to the applicable financial re­porting framework, which ensures good gover­nance, transparency, and accountability.

“We will ensure that every peso is being stretched to deliver the biggest bang per buck for the Filipino people. Much like our triumphant Olympians, we will always go for the gold,” Recto said. — BM, GMA Integrated News