On Friday, Philippine financial leaders revealed the government’s spending target for 2025. The Development Budget Coordination Committee (DBCC) announced a proposed budget of P6.120 trillion for 2025, an increase from 2024’s P5.768 trillion.
The proposed national budget for 2025 matches 20.5% of the nation’s overall GDP.
Following President Ferdinand Marcos Jr.’s statement, the DBCC disclosed the 2025 national budget limit right before the expected signing of the P5.768 trillion budget bill by Christmas.
The financial group states the P6.120 trillion 2025 budget plan aligns with broad economic projections and spending goals.
The DBCC reported that during the year’s initial 10 months, the government’s financial management saw notable progress, with income soaring to P322 trillion, a 9.4% increase from last year’s figures.
Furthermore, it outperformed the revenue goal for the time frame by 52 percent, thanks to unexpectedly high takings by the Bureau of Customs (BOC) and earnings from the Bureau of the Treasury (BTr), among other sources.
“Revenue is projected to reach P3.847 trillion by the end of the year and further rise to P6.622 trillion in 2028 due to the anticipated implementation of priority tax measures over the medium term. These measures aim to broaden the tax base, improve tax administration, enhance the fairness and efficiency of the tax system, and promote environmental sustainability to address climate change,” the DBCC said.
PH 2025 national budget set at P6.12 trillion
By October’s close, government spending surged to P4.242 trillion, marking a 4.5% increase from the same timeframe last year.
“This is a testament to the significant improvement in government spending in the previous quarter, driven by the agencies’ catch-up plans and the accelerated implementation of programs on infrastructure, social protection, education, livelihood, and employment, among others,” the DBCC said.
“As a result, disbursements for the year are projected to reach P5.340 trillion, an increase of 3.5% compared to last year. Infrastructure spending will also accelerate to P1.424 trillion, which is equivalent to 5.8% of GDP,” it added.
In the next few years, from 2024 to 2028, the economic group predicts that spending will consistently be around 20% of the GDP.
“Budget priority will continuously be given to programs and projects that ensure social and economic transformation, in line with the 8-Point Socioeconomic Agenda and the Philippine Development Plan (PDP) 2023-2028,” the DBCC said.
“We are also determined to maintain infrastructure at the center of our growth strategy with annual public spending on infrastructure set at 5% to 6% of GDP,” it added.
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