Philippine President Ferdinand Marcos Jr. signed the 2025 budget into law on Monday, outlining a 10% increase in government spending, bringing the total to a record 6.33 trillion pesos (US$109.2 billion). Marcos highlighted that this spending would support economic growth and help reduce poverty.
The new budget exceeds previous projections of 6.18 trillion pesos, with revenues forecasted at 4.64 trillion pesos. The budget deficit is expected to be 5.3% of GDP. Marcos emphasised that the budget was designed not only to address current needs but also to sustain growth and improve the lives of future generations.
The education sector receives the largest allocation, with 1.053 trillion pesos, followed by the public works ministry at 1.034 trillion pesos. Budget Minister Amenah Pangandaman announced the figures during a press briefing.
However, there were some reductions, including a cut in the military's modernisation programme, with 35 billion pesos allocated instead of the originally proposed 50 billion pesos. Advocates for the budget have expressed concerns over reductions in the education budget and the removal of a subsidy for the government health insurance programme.
Marcos had delayed the signing of the budget by over a week to review the final spending plan approved by Congress, ultimately vetoing more than 194 billion pesos (US$3.35 billion) in proposed spending.
Government spending is expected to contribute significantly to the country's economic growth, with a target growth rate of 6.0 to 8.0% in 2025.
