Marcos signs 2025 nat'l budget, vetoes P194 billion

After a thorough review with the country's economic managers, President Ferdinand ''Bongbong'' Marcos Jr. on Monday signed into law the proposed national budget for fiscal year 2025.

The signing of the P6.326-trillion budget for 2025 was held at the Ceremonial Hall of Malacañang Palace and attended by lawmakers and key government officials.

In his speech, Marcos said he directly vetoed over P194 billion worth of line items that are not consistent with his administration's priorities, including some programs of the Department of Public Works and Highways (DPWH).

''We take our role as stewards of our taxpayers’ money seriously. And for this reason, after an exhaustive and thorough review, we have directly vetoed over 194 billion worth of the line items that are not consistent with our programmed priorities,'' Marcos said. 

''These include allocations for certain programs and projects of the Department of Public Works and Highways, and those under the Unprogrammed Appropriations, which increased by 300%,'' he added. 

Marcos also said the government would pursue conditional implementation on certain items to guarantee that public funds will be used in accordance with their authorized and stated purpose.

''Specifically, to ensure that government assistance is not merely a provisional solution to a persistent issue, we are compelled to subject the implementation of the Ayuda sa Kapos ang Kita Program or AKAP to the convergence efforts of the DSWD, DOLE (Department of Labor and Employment), and NEDA (National Economic and Development Authority),'' Marcos said.

''This way we ensure that its implementation will be strategic leading to the long-term improvement of the lives of qualified beneficiaries, while guarding against misuse, and duplication, and fragmented benefits,'' he added.

Marcos stressed that this approach was anchored on a simple yet profound truth: ''The appropriation of public funds must not break the public trust.''

LIST: Line items vetoed, programs put in conditional implementation under 2025 GAA

Executive Secretary Lucas Bersamin earlier said certain items and provisions of the national budget bill would be vetoed by the President ''in the interest of public welfare, to conform with the fiscal program, and in compliance with laws."

To recall, several lawmakers have apprehensions as regards some provisions of the 2025 General Appropriation Bill as its final version was only discussed by the chairpersons of the Senate Committee on Finance and the House Committee on Appropriations when the bicameral conference was convened.

Members of Congress specifically raised concerns about the P26-billion funding for the controversial Ayuda sa Kapos ang Kita Program or AKAP, the reduction in the budget of the Department of Education (DepEd), and the zero subsidy for the Philippine Health Insurance Corporation (PhilHealth).

The budget cuts in the DepEd were made despite a provision under the 1987 Constitution indicating that the State shall assign the highest budgetary priority to the education sector.

In the signed GAA, the education sector, including the DepEd and other education offices, was allotted with P1.055 trillion while DPWH was given P1.007. The President vowed that education would remain as the top priority of his administration. 

''Titiyakin namin na mananatiling prayoridad ang social services, kasama na rin diyan ang edukasyon, ayon sa mandato ng ating Saligang Batas, pati na rin ang kalusugan,'' Marcos said.

(We will ensure that social services, including education and health, would remain our priority in accordance with our mandate under the 1987 Constitution.)

Marcos said the government should exercise maximum prudence otherwise, ''we run the risk of increasing our deficit and debt and derailing our development agenda for our country.''

Zero subsidy for PhilHealth

On the part of the PhilHealth budget, Finance Secretary Ralph Recto maintained Monday that the operating budget of state insurer is enough despite zero government subsidy for fiscal year 2025.

At a Palace press briefing following the signing into law of the P6.326-trillion national budget, Recto said the Department of Finance (DOF) would strictly monitor if PhilHealth will spend its budget wisely.

"Well, my understanding is that Congress did that because the budget for… the corporate operating budget of PhilHealth is sufficient. So, they have reserved funds of roughly 280 billion [pesos]. They have a surplus of roughly a hundred fifty billion, the last time I looked at it," Recto said.

"They have investments of more than 400 plus billion [pesos]. They will earn 200 billion in 2025. They will spend 150 billion. So iyong surplus nila, madadagdagan na naman ng 50 billion iyan. So, they have adequate resources (P50 billion will be added to their surplus. So, they have adequate resources)," he added.

Recto said the DOF would ensure that PhilHealth will spend its budget "better" as he eyed to focus on the top 10 illnesses affecting Filipinos.

Senate finance committee chairperson Grace Poe previously disclosed that it would receive zero subsidy under the proposed 2025 budget, saying the state insurer still has P600 billion reserve funds which they can use for their services.

Earlier, Marcos guaranteed that PhilHealth has sufficient funds to continue delivering health services despite the removal of its government subsidy under the proposed national budget.

Malacañang had ensured that Marcos was "thoroughly reviewing" the proposed 2025 General Appropriations Bill to make sure that it conforms to the Philippine Constitution.

ASEAN 2026

Meanwhile, Executive Secretary Lucas Bersamin said the budget of the Office of the President for fiscal year 2025 was increased as it asked for supplemental funds for the country's hosting of the Association of Southeast Asian Nations (ASEAN) Summit and Related Summits in 2026.

''Yes, as far as the budget of OP is concerned, 'yung NEP (National Expenditure Program) was followed pero dinagdagan ng P5.2 billion kasi may nangyari noong (2024), 'yung ASEAN 2026 would have been done in Myanmar pero biglang umayaw ang Myanmar kasi walang may gustong pumunta roon na heads of states. You know the problem in Myanmar,'' Bersamin said.

(The NEP was followed but P5.2 billion was added due to ASEAN 2026. Myanmar refused to host ASEAN as heads of states do not want to go there. You know the problem in Myanmar.)

He said the government's preparations for the ASEAN in 2026 will begin this 2025. —KG/AOL/VDV, GMA Integrated News