President signs P6.32-trillion budget into law

President Ferdinand Marcos Jr. on Saturday signed into law the P6.326 trillion national government budget for 2025.

Finance Secretary Benjamin Diokno said the 2025 budget is the government’s most powerful tool to deliver the biggest economic benefits to Filipinos, assuring the Department of Finance’s (DOF) strong commitment to work doubly hard to mobilize resources efficiently to fund it.

Signed into law on Dec. 30, the P6.326 trillion General Appropriations Act (GAA) for 2025 is 9.7% higher than the previous year. This is equivalent to 22.0% of 2025’s projected gross domestic product (GDP).

“This budget reflects our collective commitment to transforming economic gains into meaningful outcomes for every Filipino. It is designed not just to address our present needs, but to sustain growth and uplift the lives of generations that are yet to come,” Marcos said in a speech.

With the 2025 theme “Agenda for Prosperity: Fulfilling the Needs and Aspirations of the Filipino People,” the spending priorities in the national budget are anchored on the three pillars of the Philippine Development Plan 2023-2028: Develop and Protect the Capabilities of Individuals and Families; Transform Production Sectors to Generate More Quality Jobs and Competitive Products; and Create an Enabling Environment.

The budget also scaled up sustainable and green investments aligned with the National Climate Change Action Plan 2011-2028, ensuring a national budget that is growth-enhancing, disaster-responsive, and climate-resilient.

After an exhaustive and thorough review, the president emphasized that the executive branch directly vetoed over 194 billion pesos worth of line items that were not consistent with programmed priorities.

Conditional implementation on certain items is also pursued to ensure that the people’s funds are utilized in accordance with their authorized purposes.   

“We will ensure that social services, including education, are prioritized as mandated by our Constitution, as well as the continued implementation of our economic services, including infrastructure and agriculture, to strengthen our economy and combat poverty caused by rising prices and calamities,” the president stressed.

Recognizing the herculean task of mobilizing resources to fund the projects and programs itemized in the 2025 GAA, Diokno reassured the public that the DOF will ensure that the country has enough funds to meet its needs and that every centavo will be spent efficiently on programs and projects that will greatly benefit the people.

“The public can be assured that we in the Department of Finance will further improve our work to fund projects and programs under our national budget,” Diokno said in his remarks during a press conference following the ceremonial signing of the 2025 GAA.

The finance chief explained that of the 6.326 trillion peso national budget for next year, only 4.64 trillion pesos is supportable by revenues. This translates to daily government expenditures of 17.33 billion pesos, with the Department of Finance bearing the responsibility of generating 12.72 billion pesos in daily revenues.

“Therefore, given the magnitude of our responsibility, the DOF will work 24/7 to meet our needs. And we will ensure that every centavo goes to the right projects and programs for the country,” Diokno said.

He emphasized that the DOF will 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 4.42 trillion pesos, surpassing the full-year target of 4.27 trillion pesos. As a percentage of GDP, the emerging revenues will climb to 16.7%, the highest in the last 27 years.

Emerging non-tax revenues for 2024 are expected to reach 606.6 billion pesos—the highest ever recorded.

“These are all because of the hard work and contribution of the Bureau of Internal Revenue, the Bureau of Customs, the Bureau of the Treasury, our privatization team, and our government-owned and -controlled corporations,” he said.

In sustaining this momentum, the finance chief stressed that the government will continue to adhere to its Medium-Term Fiscal Program that reduces our deficit and debt gradually in a realistic manner; while creating more jobs, increasing our people’s incomes, and decreasing poverty in the process.